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Different Approach to MakerDAO Rate Setting
Different Approach to MakerDAO Rate Setting
Since Black Thursday, ETH is still performing well and organic demand for leverage has only increased. However, DAI selling from leverage seekers could not offset the yield farming craze and on average DAI has traded at around $1.02. Potentially, market making activities also decreased due to lucrative opportunities from yield farming. Importantly, this all happened despite heavily increased debt ceilings, the onboarding of new collateral assets and 0% rates across the board. The issue is that all the conventional monetary tools at hand simply cannot compete with massive DAI demand from yield farmers and new price mechanics introduced by several AMMs like Curve.
#Fintech#CryptoAssets#Stablecoins#DAI#MakerDAO#DFC
·forum.makerdao.com·
Different Approach to MakerDAO Rate Setting
USDC Stablecoin Supply Is up 250% in 2020. Here's Why
USDC Stablecoin Supply Is up 250% in 2020. Here's Why
The total supply of USDC has topped $1.8 billion, rising more than 250% since the beginning of 2020, likely spurred on by the explosion in DeFi’s yield farming popularity (where liquidity providers are rewarded for staking stablecoins and other digital assets in DeFi protocols for use in loan issuance and other financial activities.) The acceleration in USDC issuance also may be powered in part by the August 27 release of USDC version 2.0, an upgrade that improved security by transitioning some administrative USDC-related tasks to on-chain processes and allowed integrated projects to pay gas fees for users when transacting with USDC. Also, it’s supported by and easily obtained on Coinbase.
#Fintech#CryptoAssets#Stablecoins#USDC#DeFi#Coinbase#DFC
·decrypt.co·
USDC Stablecoin Supply Is up 250% in 2020. Here's Why
MakerDao's Short (and Long) Term Fixes for Dai's Broken Peg - CoinDesk
MakerDao's Short (and Long) Term Fixes for Dai's Broken Peg - CoinDesk
Booming demand for stablecoins in DeFi’s yield farming landscape is breaking DAI's U.S. dollar peg. MakerDAO’s DAI, which uses Ethereum and other stablecoins as collateral to maintain the peg, is trading above its targeted peg, has been consistently trading above $1 since mid-March. The community responded by setting all rates to zero, but the demand for DAI is so extreme that even these zero rates don’t make a difference. MakerDAO’s community is debating some tweaks to its monetary policy to restore the peg, though Maker’s creator believes the only long-term solution is adding additional, varied collateral to the DAO.
#Fintech#CryptoAssets#Stablecoins#DAI#MakerDAO#DeFi#DFC
·coindesk.com·
MakerDao's Short (and Long) Term Fixes for Dai's Broken Peg - CoinDesk
Coinbase And Circle Adds Algorand Blockchain To Fast-Growing Digital Dollar ‘Stablecoin’ Market
Coinbase And Circle Adds Algorand Blockchain To Fast-Growing Digital Dollar ‘Stablecoin’ Market
US Dollar Coin (USDC) received a blockchain upgrade to support faster transactions on Algorand. Algorand brings over 1,000 transactions per second (versus Ethereum's 15) and transaction fees of 1/20th of a cent to the USDC ecosystem, and soon to be released innovations offer the potential of scaling throughput by 8-10x on Layer 1, accompanied by new secure smart contracts that complement standard tokens such as USDC.
#Fintech#CryptoAssets#Stablecoins#Algorand#Ethereum#USDC#DFC
·forbes.com·
Coinbase And Circle Adds Algorand Blockchain To Fast-Growing Digital Dollar ‘Stablecoin’ Market
Big European states call for cryptocurrency curbs to protect consumers
Big European states call for cryptocurrency curbs to protect consumers
The finance ministers of the five European Union member states said in a joint statement that stablecoins should not be allowed to operate in the 27-member bloc until legal, regulatory and oversight challenges had been addressed. The five countries want all stablecoins to be pledged at a ratio of 1:1 with fiat currency, with reserve assets denominated in the euro or other currencies of EU members states, and deposited in an EU-approved institution. All entities operating as part of a stablecoin scheme should be registered in the EU, they said. Such a move would likely impact the Geneva-based Libra Association, which plans to issue and govern Libra. https://www.eu2020finance.de/en/news/joint-statement-on-asset-backed-crypto-assets-stablecoins
#Fintech#CryptoAssets#Regulation#Stablecoins#DFC
·reuters.com·
Big European states call for cryptocurrency curbs to protect consumers
The Libra Association appoints James Emmett as Managing Director of Libra Networks
The Libra Association appoints James Emmett as Managing Director of Libra Networks
Former HSBC executive James Emmett will take on the role of managing director of Libra Networks LLC, the operating company subsidiary of the Libra Association. He has was previously CEO of HSBC Bank PLC and Europe. Before that he was chief operating officer at the bank, where he guided technology and operations.
#Fintech#CryptoAssets#Stablecoins#Facebook#Libra#DFC
·libra.org·
The Libra Association appoints James Emmett as Managing Director of Libra Networks
Libra’s Long Road From a Facebook Lab to the Global Stage: A Timeline
Libra’s Long Road From a Facebook Lab to the Global Stage: A Timeline
This Coindesk article provides a detailed timeline of the Libra project’s history, from the early signs that Mark Zuckerberg’s social network was sniffing around the blockchain industry to Libra’s recent watering-down of its once-bold plans. Bookmark this article, because Coindesk will keep updating it as the story continues to unfold.
#Fintech#CryptoAssets#Stablecoins#Facebook#Libra#DFC
·coindesk.com·
Libra’s Long Road From a Facebook Lab to the Global Stage: A Timeline
SEC, OCC Issue First Regulatory Clarifications for Stablecoins
SEC, OCC Issue First Regulatory Clarifications for Stablecoins

OCC Issue First Regulatory Clarifications for Stablecoins The U.S. Office of the Comptroller of the Currency (OCC) clarified national banks' and federal savings associations' authority to hold reserves on behalf of issuers of certain stablecoins. Stablecoin issuers have been using U.S. banks for years, but in an unclear regulatory environment. The clarification addresses the use of stablecoins backed by a single fiat currency on a one-to-one basis where the bank verifies at least daily that reserve account balances meet or exceed the number of the issuer's outstanding stablecoins. It applies only to situations where there is a hosted wallet, meaning wallets controlled by a trusted third party, as opposed to unhosted wallets that are controlled by the individual user who owns the cryptos being stored. https://www.occ.treas.gov/news-issuances/news-releases/2020/nr-occ-2020-125.html

#Fintech#CryptoAssets#Stablecoins#DFC
·coindesk.com·
SEC, OCC Issue First Regulatory Clarifications for Stablecoins
U.S. SEC FinHub Staff Statement on OCC Stablecoin Interpretation
U.S. SEC FinHub Staff Statement on OCC Stablecoin Interpretation
The U.S. Securities and Exchange Commission (SEC) said certain stablecoins might not be securities under federal law, but advised issuers to work with the agency and legal counsel to ensure this is the case. Whether a particular digital asset is a security under the federal securities laws is inherently a facts and circumstances determination. This determination requires a careful analysis of the nature of the instrument, including the rights it purports to convey, and how it is offered and sold. https://www.sec.gov/news/public-statement/sec-finhub-statement-occ-interpretation
#Fintech#CryptoAssets#Stablecoins#DFC
·sec.gov·
U.S. SEC FinHub Staff Statement on OCC Stablecoin Interpretation
Stablecoins: Implications for monetary policy, financial stability, market infrastructure and payments, and banking supervision in the euro area
Stablecoins: Implications for monetary policy, financial stability, market infrastructure and payments, and banking supervision in the euro area
This European Central Bank (ECB) paper summarises the outcome of an analysis of stablecoins undertaken by the ECB Crypto-Assets Task Force. At the time of writing, the stablecoin debate lacks a common taxonomy and unambiguous terminology. This paper applies a definition that distinguishes stablecoins from existing forms of currencies – regardless of the technology used – and characterises stablecoin arrangements based on the functions they fulfil. This approach emphasises the role of technology-neutral regulation in preventing arbitrage, as well as comprehensive Eurosystem oversight, irrespective of stablecoins’ regulatory status. Against this background, this paper assesses stablecoins’ implications for the euro area based on three scenarios for the uptake of stablecoins.
#Fintech#CryptoAssets#Stablecoins#DFC
·ecb.europa.eu·
Stablecoins: Implications for monetary policy, financial stability, market infrastructure and payments, and banking supervision in the euro area
Meet OUSD: The First Stablecoin That Earns A Yield In Your Wallet
Meet OUSD: The First Stablecoin That Earns A Yield In Your Wallet
Peer-to-peer commerce company Origin launched Origin Dollars, or OUSD, a stablecoin whose reserves leverage decentralized finance (DeFi) so that balances grow wherever it resides, no staking or account required. OUSD will be backed one-for-one by the three big stablecoins on Ethereum: Tether’s USDT, Circle and Coinbase’s USDC and MakerDAO’s DAI. Users can mint OUSD by depositing any of those three into Origin’s new app, or they can just buy it on Uniswap. Either way, the OUSD will just start growing in their wallet, no further action needed.
#Fintech#CryptoAssets#DeFi#Stablecoins#DFC
·medium.com·
Meet OUSD: The First Stablecoin That Earns A Yield In Your Wallet
How to Build a Stablecoin: Certainty, Finality, and Stability Through Commercial Law Principles
How to Build a Stablecoin: Certainty, Finality, and Stability Through Commercial Law Principles
This article spells out how to build a USD stablecoin legal basis by leveraging the core commercial law principles of (i) focusing on the principles of settlement finality, (ii) rules for adverse claims, (iii) discharge of the underlying obligation, and (iv) the concept of a security entitlement. It maps out how these principles are embodied under the U.S. commercial laws of investment securities (UCC Article 8) and of payments (UCC Articles 3, 4, and 4A). The goal in doing so is to show how innovators can incorporate novel, technology-driven market practices and business models into the existing financial law framework in a proven and effective way — how to leverage what is working today and does not need to be invented again. Awareness of the availability of these commercial law tools, and their limitations, can provide important help to stablecoin developers and market participants in managing their exposure, designing efficient financial innovations, and controlling the risk to the broader financial market.
#Fintech#CryptoAssets#Stablecoins#DFC
·lawcat.berkeley.edu·
How to Build a Stablecoin: Certainty, Finality, and Stability Through Commercial Law Principles
OCC's First Issued Guidance for Stablecoins Brings More Questions
OCC's First Issued Guidance for Stablecoins Brings More Questions
In the guidance, the OCC writes that it is allowing banks to manage funds kept in a “hosted” wallet, an address that would essentially represent the relevant stablecoin’s reserves. The watchdog adds, “We are not presently addressing the authority to support stablecoin transactions involving un-hosted wallets.” “Un-hosted wallets” seem to refer to addresses individuals or businesses would control. This distinction has caused some confusion, with Coin Center’s Jerry Brito raising the question whether this points to a possible prohibition on banking firms that support un-hosted wallets.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·coindesk.com·
OCC's First Issued Guidance for Stablecoins Brings More Questions
Kenya’s golf stablecoin highlights need for Africa-wide regulations
Kenya’s golf stablecoin highlights need for Africa-wide regulations
YENTS, a stablecoin developed by the Kenya’s Young Entrepreneurs Network (YEN), has entered into testing under the local regulatory sandbox. YEN, which organizes golfing tournaments to facilitate networking opportunities for Kenyan entrepreneurs, plans on initially using the stablecoin as a means of payment for sporting events and training programs. YEN intends to launch the token in November, and hopes to use it to accept investments into a planned golf course.
#Fintech#CryptoAssets#Stablecoins#DFC
·cointelegraph.com·
Kenya’s golf stablecoin highlights need for Africa-wide regulations
Stablecoins and Fair Value Measurement Feature in Updated Guidance from AICPA Digital Assets Working Group
Stablecoins and Fair Value Measurement Feature in Updated Guidance from AICPA Digital Assets Working Group
The Association of International Certified Professional Accountants (AICPA) Digital Assets Working Group added 13 questions and answers to its Accounting for and Auditing of Digital Assets Practice Aid. The Aid includes vital information for professionals on how to account for and audit digital assets. It is intended for those with a fundamental knowledge of blockchain technology, is based on existing professional literature and the experience of members of the Digital Assets Working Group and is specific to U.S. GAAP (for non-governmental entities) and GAAS.
#Fintech#CryptoAssets#Accounting#Auditing#Stablecoins#DFC
·aicpa.org·
Stablecoins and Fair Value Measurement Feature in Updated Guidance from AICPA Digital Assets Working Group
celo.works – Bringing non-custodial wallets to feature phones
celo.works – Bringing non-custodial wallets to feature phones
Celo.Works is a non-custodial mobile wallet, enabling feature phone users to send and receive remittances at a fraction of the cost compared to traditional methods. Celo.Works is built on the Celo blockchain. Celo.Works is accessible, enabling users to send/receive cUSD on feature phones that cost as little as $15.
#Fintech#CryptoAssets#Stablecoins#Celo#DFC
·celo.works·
celo.works – Bringing non-custodial wallets to feature phones
Regulation, Supervision and Oversight of “Global Stablecoin” Arrangements
Regulation, Supervision and Oversight of “Global Stablecoin” Arrangements
The Financial Stability Board (FSB) published a report that sets out ten high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements, both at the domestic and international level, that are proportionate to the risks. They support responsible innovation and provide sufficient flexibility for jurisdictions to implement domestic approaches. GSC arrangements are expected to adhere to all applicable regulatory standards and to address risks to financial stability before commencing operation, and to adapt to new regulatory requirements as necessary.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·fsb.org·
Regulation, Supervision and Oversight of “Global Stablecoin” Arrangements
MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
What made the original version of dai so transgressive was its ability to recreate the dollar out of entirely censorship-resistant material. The new version of dai no longer relies solely on censorship-resistant material. But perhaps this new version is even more transgressive. It has secretly docked itself to the Federal Reserve by using USDC stablecoins as a bridging mechanism.
#Fintech#CryptoAssets#MakerDAO#Stablecoins#DFC
·coindesk.com·
MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
Introducing XSGD — the Singapore Dollar-backed and Travel Rule compliant stablecoin
Introducing XSGD — the Singapore Dollar-backed and Travel Rule compliant stablecoin
Xfers launched a Singapore dollar-pegged XSGD stablecoin. Xfers has a Monetary Authority of Singapore (MAS) Major Payment Institution (MPI) e-money issuance license. All XSGD tokens are backed 1:1 with Singapore Dollars held in Xfers’ reserve held in segregated accounts with a fully regulated MAS-approved bank. Xfers claims that XSGD is the world’s first stablecoin to be be compliant with the Financial Action Task Force’s travel rule, so financial institutions can use it for cross-border money transfers as well.
#Fintech#CryptoAssets#Stablecoins#DFC
·medium.com·
Introducing XSGD — the Singapore Dollar-backed and Travel Rule compliant stablecoin
USDC Continues Move Away From Ethereum, Heads to Stellar
USDC Continues Move Away From Ethereum, Heads to Stellar
US dollar-pegged stablecoin Circle will add USDC support to Stellar’s array of products, among them payments tools, infrastructure APIs and business accounts products, by the first quarter of next year. Circle has long sought to end its dependence on the Ethereum blockchain. In June, it announced support for the Algorand blockchain.
#Fintech#CryptoAssets#Stablecoins#USDC#Algorand#Stellar#DFC
·decrypt.co·
USDC Continues Move Away From Ethereum, Heads to Stellar
What the OCC Interpretive Letter on Stablecoins Means for Banks, Issuers, or Users
What the OCC Interpretive Letter on Stablecoins Means for Banks, Issuers, or Users
The U.S. Office of the Comptroller of the Currency (OCC) stablecoin letter only address the permissibility of managing reserves for hosted wallets, which requires client onboarding and know-your-customer (KYC), and therefore limits its discussion to private stablecoin networks, and argues that this activity “would not contribute to the global and systemic nature noted” by the FSB. In contrast, the OCC may be suggesting that a public stablecoin’s network design, once launched, could not be walked back, and (absent controls) could provide new avenues for illicit activity at a speed and global scale not currently available.
#Fintech#CryptoAssets#Stablecoins#DFC
·promontory.com·
What the OCC Interpretive Letter on Stablecoins Means for Banks, Issuers, or Users
Tether Still Dominates Stablecoins, but USDC and Dai Are Winning DeFi
Tether Still Dominates Stablecoins, but USDC and Dai Are Winning DeFi
Tether (USDT), with a market cap surpassing $16 billion, continues to hold the lion’s share of stablecoins in circulation, but two smaller rivals are trouncing it in crypto’s hottest market this year, decentralized finance (DeFi). Measured by the total value locked in six of the most popular DeFi protocols – Compound, Maker, Uniswap, Curve, Aave and Balancer – USD coin (USDC) is in the lead among stablecoins followed by dai (DAI), the native stablecoin to MakerDAO. USDC and DAI have market caps of $2.74 billion and $608 million, respectively.
#Fintech#CryptoAssets#Stablecoins#DeFi#DFC
·coindesk.com·
Tether Still Dominates Stablecoins, but USDC and Dai Are Winning DeFi
Centre Consortium Announces Solana as Official Chain for USDC
Centre Consortium Announces Solana as Official Chain for USDC
The Solana blockchain has become an Official Chain for USDC, continuing the expansion of USDC as an open standard and protocol for fiat digital currency on blockchains. Solana offers significant scalability and speed, delivering upwards of 50,000tps, with block production and settlement finality in 400ms, while operating with extremely low cost transaction fees at a tiny fraction of a cent.
#Fintech#CryptoAssets#Stablecoins#USDC#DFC
·medium.com·
Centre Consortium Announces Solana as Official Chain for USDC
JPMorgan creates blockchain unit, says the technology nears profits
JPMorgan creates blockchain unit, says the technology nears profits
JPMorgan Chase's JPM Coin digital currency JPM is being used commercially for the first time this week by a large technology client to send payments around the world. That development, along with other behind-the-scene moves, persuaded JPMorgan to create a new business to house its blockchain and digital currency efforts called Onyx. https://www.jpmorgan.com/onyx/index
#Fintech#CryptoAssets#Stablecoins#JPMCoin#DFC
·cnbc.com·
JPMorgan creates blockchain unit, says the technology nears profits
Stablecoin Regulation in The United States
Stablecoin Regulation in The United States
In light of their cross-border nature, stablecoin projects must work with regulators around the world to determine the appropriate regulatory treatment of this relatively new asset class.  With this in mind, this article seeks to provide an overview of how U.S. regulators are approaching the evolving world of stablecoins.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·legal500.com·
Stablecoin Regulation in The United States
An early stablecoin? The Bank of Amsterdam and the governance of money
An early stablecoin? The Bank of Amsterdam and the governance of money
This BIS paper draws lessons on the central bank underpinnings of money from the rise and fall of the Bank of Amsterdam (1609-1820). The Bank started out as a "stablecoin": it issued deposits backed by silver and gold coins, and settled payments by transfers across deposits. Over time, it performed functions of a modern central bank and its deposits took on attributes of fiat money. The economic shocks of the 1780s, large-scale lending and lack of fiscal support led to its failure. Using monthly balance sheet data, we show how confidence in Bank money gave way to a run equilibrium, where the fall of the premium on deposits over coins ("agio") into negative territory was swift and precipitous. This holds lessons for the governance of digital money.
#Fintech#CryptoAssets#Stablecoins#DFC
·bis.org·
An early stablecoin? The Bank of Amsterdam and the governance of money
Wyoming Issues Second Crypto Bank Charter
Wyoming Issues Second Crypto Bank Charter
Wyoming recently awarded its second special-purpose depository institution (SPDI) charter to Avanti Bank. One of the most notable products that Avanti intends to offer is the “Avit” stablecoin "disruptor." Avanti Bank's Avit will be a tokenized, programmable US dollar. Becasue Avit will be issued by, and be a direct obligation of, a bank, making it an electronic version of a traditional bank note. This means the Avit can be used in software applications like other stablecoins but may be considered more reliable than traditional stablecoins because users can trust that the deposits backing the Avit are held in the same state chartered financial institution that issued the instrument. Critically, if the Avit is a bank note it is also exempt from regulation as a security by the SEC. One legal wrinkle is that Article 3 of the Uniform Commercial Code (UCC), which governs bank notes, has never before been directly extended to electronic negotiable instruments such as digital bank notes. Nevertheless, there is an argument that Article 3 provides the necessary legal framework for banks to issue a variety of electronic negotiable instruments, including digital certificates of deposits. One could argue that a bank issuing a product with features similar to a stablecoin is really just a new form of a traditional bank activity.
#Fintech#CryptoAssets#Stablecoins#Avanti#DFC
·blockchainlegalresource.com·
Wyoming Issues Second Crypto Bank Charter
Top Japanese banks, companies to test private digital currency next year
Top Japanese banks, companies to test private digital currency next year
More than 30 major Japanese firms, including banks such as MUFG, Sumitomo Mitsui and Mizuho, are reportedly set to trial a common, private digital currency next year to improve payments. Other group members include NTT, Accenture, Daiwa Securities, and Nomura. Observers of the initiative include government agencies of the country, such as the Bank of Japan and the Financial Services. Agency.https://news.decurret.com/hc/ja/article_attachments/360100063753/___________.pdf
#Fintech#CryptoAssets#Stablecoins#DFC
·theblockcrypto.com·
Top Japanese banks, companies to test private digital currency next year