Analysis
Japan’s stimulus package has shaken global markets, including Bitcoin, while the UK cracks down on Russian money laundering and sanctions evasion with crypto.
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Stablecoin News
One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions.
The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies.
Stablecoin design takes many different forms, each with its own tradeoffs:
- Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX).
- Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD.
- Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
- News
India’s government is considering adopting a stablecoin regulatory framework while the Reserve Bank of India urges a "cautious" approach.
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The investment will help Parfin expand its onchain settlement tools and strengthen stablecoin infrastructure that is already driving institutional crypto use in LATAM.
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The ECB is concerned that US dollar stablecoins could weaken its ability to affect policy, and European issuers have ideas about how this could be solved.
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HSBC is the latest megabank to double down on tokenized deposits versus stablecoins by preparing for new launches in the US and the UAE next year.
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KRW-pegged stablecoin rails aim to globalize K-finance, streamlining cross-border payments, enterprise integration and inclusive digital services.
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Basel’s toughest crypto rules are under review as the US, UK, and the EU diverge, with booming stablecoin adoption forcing a rethink of 1,250% capital charges, the group’s chair told the FT.
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The integration links token-based payroll with regulated cash-out rails, giving Filipino workers a way to receive stablecoin wages and convert them instantly to pesos.
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The launch of the UBI program, utilizing a “digital sovereign bond,” occurred two months after the IMF warned against the island nation using an “untested” digital asset.
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The new omnichain token brings fully backed dollar liquidity to Hyperliquid, Plume and Aptos while keeping a single regulated supply across networks.
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Brazil is reportedly considering imposing a tax on the use of cryptocurrency for international payments, as it aligns its rules with a global standard for sharing tax data.
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Southeast Asian super app Grab’s MOU with StraitsX shifts its Web3 efforts from pilots to infrastructure, exploring a unified stablecoin settlement layer across Asia.
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The initiative is aggregating over ten institutional asset managers into a single, diversified vault.
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Chido Munyati, head of Africa at the World Economic Forum, said in a statement that outdated payments and documents are a significant obstacle for African trade, one that he hopes digitization can solve.
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LevelField could become the first crypto-friendly FDIC-insured bank to offer crypto services after receiving approval from the Illinois financial regulator to acquire Burling Bank.
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