Stablecoins

The Rise of Stablecoins in Emerging Markets

Tuesday. December 31 at 7:00 PM

1 min. read

Stablecoins offer stability in regions prone to economic volatility and currency devaluation, making them attractive to individuals and businesses. Unlike traditional currencies, stablecoins are pegged to assets like the US dollar, ensuring price consistency. This feature drives their adoption in regions like Sub-Saharan Africa and Latin America, where they are used for international payments and liquidity management. The introduction of stablecoins in 2014 merged blockchain technology with financial stability, attracting a wider audience beyond speculative investors. In countries like Nigeria and Argentina, stablecoins provide a hedge against inflation and currency devaluation. Despite challenges like regulatory uncertainty and limited internet access, educational initiatives and innovative platforms are promoting stablecoin adoption. The coexistence of Central Bank Digital Currencies (CBDCs) and stablecoins presents opportunities for synergies rather than competition, shaping the future of digital payments in emerging markets.

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Ethena Labs Unveils 2025 Roadmap for Telegram-based Payment App

Saturday. January 4 at 5:00 AM

Ethena Labs recently revealed its roadmap for 2025, introducing a payment and savings app on Telegram that utilizes the sUSDe stablecoin. The platform aims to offer a neobank experience within the messaging app, enabling users to send, spend, and save sUSDe directly. Integration with Apple Pay will allow for seamless transitions between savings and mobile payments. Ethena plans to transform into Ethena Network to compete with Tether, focusing on on-chain financial innovation. The launch of iUSDe in February, built on sUSDe, will feature token-level transfer restrictions. Ethena's goal for the first quarter of 2025 includes partnering with traditional finance institutions to distribute iUSDe. The company has experienced significant growth, becoming the second-fastest protocol to reach $100 million in revenue. Ethena also introduced USDtb, a stablecoin backed by BlackRock's BUIDL fund, and partnered with World Liberty Financial. The roadmap hints at upcoming stablecoin-powered products like perpetual products and prediction markets.

Stablecoins

Transition in Legal Leadership at Tether and Bitfinex

Saturday. January 4 at 4:00 AM

Tether and Bitfinex's General Counsel Stuart Hoegner has retired, with Michael Hilliard taking over. Hoegner's retirement is separate from MiCA implementation. Hilliard, who has worked with Hoegner for years, will now serve as the legal chief. Tether stated that Hilliard's understanding of the firms' operations and legal challenges has been crucial. The change comes amidst MiCA regulations in Europe, leaving stablecoin issuers uncertain. ESMA has not clarified USDT's status under MiCA. Despite Coinbase delisting USDT, it continues trading in the EU. USDT's market cap saw a decline but remains dominant in the market. Tether recently moved a significant amount of Bitcoin into its reserve. The transition signifies a significant change in leadership and regulatory challenges for Tether and Bitfinex.

Stablecoins

Rise of USDC Across Blockchain Networks

Friday. January 3 at 2:00 PM

The circulating supply of Circle’s USD Coin (USDC) has surged by 80% from its lows, nearing $44 billion, with a more balanced distribution among various blockchain networks. Ethereum holds 65% of USDC supplies, while Solana and other networks are gaining traction. The shift from Ethereum dominance is attributed to increased onchain activity and the popularity of Solana-based tokens. Analysts predict USDC's market cap could double in 2025. Stablecoin market caps, including USDC, grew significantly post-Trump's election win. Steno Research forecasts USDC's supply to exceed $100 billion by 2025, contingent on Tether's regulatory status in the EU. This growth is seen as beneficial for DeFi, with stablecoins serving as a gateway. Grayscale's addition of Solana-based DeFi apps to its top tokens list further highlights the sector's potential growth.

Stablecoins

T3 FCU Freezes $100 Million in Stolen Assets

Friday. January 3 at 11:00 AM

Tether, TRON, and TRM Labs collaborated to freeze $100 million in criminal assets globally. The T3 Financial Crime Unit, established in August 2024, works with law enforcement to disrupt illegal activities using blockchain transactions. The group analyzes on-chain behavior, identifies suspicious patterns, and assists authorities in intercepting illicit transfers related to money laundering, fraud, and terrorism financing. TRON's founder, Justin Sun, highlighted the increased scrutiny on USDT misuse. Tether's CEO, Paolo Ardoino, emphasized the benefits of public-private partnerships in enhancing security standards. The T3 FCU has monitored over USDT 3 billion in transactions, preventing criminal exploitation of stablecoins. The unit's success in freezing assets demonstrates effective industry collaboration and cross-border enforcement. Critics raise privacy concerns, but T3 FCU's targeted actions within legal frameworks showcase the potential of coordinated analytics in combating digital asset crimes.

Stablecoins