DFC

5301 bookmarks
Custom sorting
CPMI and IOSCO publish guidance, call for comments on stablecoin arrangements
CPMI and IOSCO publish guidance, call for comments on stablecoin arrangements
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published for public consultation preliminary guidance that confirms and clarifies that systemically-important stablecoin arrangements (SAs) should observe international standards for payment, clearing and settlement systems. The report proposes additional guidance on how certain aspects of the CPMI/IOSCO Principles for Financial Market Infrastructures (PFMIs) apply to the novel features of SAs.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·bis.org·
CPMI and IOSCO publish guidance, call for comments on stablecoin arrangements
US FDIC Said to Be Studying Deposit Insurance for Stablecoins
US FDIC Said to Be Studying Deposit Insurance for Stablecoins
The Federal Deposit Insurance Corp. (FDIC) is reportedly studying whether certain stablecoins might be eligible for its coverage. The agency is trying to analyze what so-called pass-through FDIC insurance might look like for the reserves that stablecoin issuers hold at banks. Such coverage would insure holders of the tokens against losses up to $250,000 if the bank holding the collateral were to fail. The FDIC is also looking at what regular, direct deposit insurance might look like for banks that want to issue stablecoins.
#Fintech#CryptoAssets#Stablecoins#FDIC#DFC
·coindesk.com·
US FDIC Said to Be Studying Deposit Insurance for Stablecoins
MoneyGram launches USDC settlement using the Stellar blockchain
MoneyGram launches USDC settlement using the Stellar blockchain
"MoneyGram has partnered with the Stellar Development Foundation to enable consumers to send money using Circle’s USD Coin (USDC) stablecoin, and convert directly to and from fiat across its global retail platform. Working alongside Circle, MoneyGram will also enable “near-instant backend settlement,” account funding and local fiat withdrawals using USDC. United Texas Bank will act as the settlement bank to complete the process within the regulatory framework."
#Fintech#CryptoAssets#Stablecoins#CrossBorder#Payments#Stellar#USDC#DFC
·cointelegraph.com·
MoneyGram launches USDC settlement using the Stellar blockchain
Matt Levine: Looking for Tether’s Money
Matt Levine: Looking for Tether’s Money
"Again, I think if you told that story five years ago people would think you were nuts. “No no no,” they would say, “you can’t manufacture safe dollar assets out of Bitcoin, Bitcoin is too volatile, there is no floor, it could go to zero, this is nonsense.” I think there is a good chance that if you tell that story five years from now it will be unremarkable. “Yes right of course the Bank of Tether issues deposits worth one Tether and uses those deposits to fund margin loans to levered Bitcoin investors, that’s just how banking works,” people will say. It is just a function of how confident people are in Bitcoin’s permanence and its function as a store of value. Right now we are in between; the story is plausible but still weird. It’s not the story that Tether wants to tell, and it’s not the main story of Tether. But it's the interesting part."
#Fintech#CryptoAssets#Stablecoins#Tether#Bitcoin#DFC
·bloomberg.com·
Matt Levine: Looking for Tether’s Money
Crypto Mystery: Where’s the $69 Billion Backing the Stablecoin Tether?
Crypto Mystery: Where’s the $69 Billion Backing the Stablecoin Tether?
A Bloomberg article made numerous claims against Tether, including that its chief financial officer Giancarlo Devasini has used the company’s reserves to make investments, that seem to contradict Tether’s public position that the holdings were fully backed at all times. In addition, the article alleges that Tether has invested in Chinese firms and issued crypto-backed loans “worth billions of dollars.” Furthermore, Wall Street traders were canvased to see if any had ever seen any trades made by the company, which supposedly holds $30 billion in commercial paper short-term loans — suggesting the fact that none had seen any should raise eyebrows. Additionally, only one bank was located — in the Bahamas — that was working with the firm. Tether called the article “another tired attempt to undermine” the company, pointing to its recent quarterly report on its holdings to demonstrate that it is 100% backed, although not offering any detail on its asset holdings that would concretely refute the Bloomberg article's contentions.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bloomberg.com·
Crypto Mystery: Where’s the $69 Billion Backing the Stablecoin Tether?
CFTC Fines Tether and Bitfinex $42.5M for ‘Untrue or Misleading’ Claims
CFTC Fines Tether and Bitfinex $42.5M for ‘Untrue or Misleading’ Claims
The US Commodity Futures Trading Commission (CFTC) fined Bitfinex and Tether more than $42 million on allegations that over a 26-month period between 2016 and 2018, the reserve funds backing its USDT stablecoin were comingled with the company’s corporate funds and held in non-cash products, relying on unregulated entities and certain third-parties to hold funds comprising the reserves. In a statement published shortly after the CFTC release, Tether confirmed that indeed the reserves were not all in cash and all in a bank account titled in Tether’s name, at all times, contrary to what the firm had claimed during the period in question.
#Fintech#CryptoAssets#Stablecoins#Tether#Regulation#DFC
·coindesk.com·
CFTC Fines Tether and Bitfinex $42.5M for ‘Untrue or Misleading’ Claims
Tether’s bitcoin-backed lending clashes with dollar promise
Tether’s bitcoin-backed lending clashes with dollar promise
"The CEO of crypto lending platform Celsius Network has said that Tether lends out new USDT stablecoins in return for cryptocurrencies — a claim that calls further into question Tether’s founding promise that it uses only real dollars to issue its tokens. Celsius borrows USDT from Tether in return for well-known cryptocurrencies. New USDT is issued for such loans and later destroyed when the loan is closed so it does not permanently increase USDT in circulation. This flies in the face of the Tether operating model described in its whitepaper - issuance of USDT is supposed to be on a one-for-one basis against dollars. However a primer published in May 2021 says only that that 'newly issued [USDT] must be backed by collateral' and that 'redeemed [USDT] tokens are not released back into circulation unless new collateral has been provided'."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·ft.com·
Tether’s bitcoin-backed lending clashes with dollar promise
Pilot version of Facebook's Novi digital wallet app now available
Pilot version of Facebook's Novi digital wallet app now available
Facebook's Novi digital wallet app is being rolled out a small pilot in the United States and Guatemala. With it, people can send and receive money instantly, securely, and with no fees. It will use the Pax Dollar (USDP) stablecoin through partnerships with Paxos and Coinbase. A small cohort of users in both countries will be able to download the Novi app on iPhone or Android devices, sign up with valid government-issued ID, and add money to their accounts with a debit card. According to CEO David Marcus, USDP was chosen because it's been operating successfully for over three years and has important regulatory and consumer protection attributes. He also made it clear that Novi's support for the larger-scale Diem project hasn’t changed and they intend to launch Novi with Diem once it receives regulatory approval and goes live. https://www.novi.com/file/pilot-version-of-novi-now-available
#Fintech#CryptoAssets#Stablecoins#Facebook#Novi#Diem#DFC
·novi.com·
Pilot version of Facebook's Novi digital wallet app now available
Statement from Diem Networks US Regarding Congressional Interest in Project
Statement from Diem Networks US Regarding Congressional Interest in Project
Facebook's Novi launched its retail payment app yesterday (October 19) going with Paxos’ USDP stablecoin as its transactional currency while it awaits regulatory approval for its own Diem stablecoin. However, almost immediately, US Senate Democrats addressed a letter to Facebook CEO Mark Zuckerberg questioning the company’s credibility with crypto, and calling for the immediate discontinuance of the Novi pilot and a commitment not to bring Diem to market. Diem replied by clarifying that Diem is an independent organization with Facebook’s Novi being just one of more than two dozen members of the Diem Association, so that Novi’s pilot with Paxos is unrelated to Diem. The response went on to say that "When Diem comes to market [Diem] will do so having reflected the feedback of regulators from around the world and with confidence that Diem’s payment system is secure, will protect consumers, and will combat financial crime.”
#Fintech#CryptoAssets#Stablecoins#Facebook#Diem#Novi#Paxos#Coinbase#DFC
·diem.com·
Statement from Diem Networks US Regarding Congressional Interest in Project
Hindenburg Research Announces $1,000,000 Bounty For Details On Tether’s Backing
Hindenburg Research Announces $1,000,000 Bounty For Details On Tether’s Backing
"Hindenburg Research, a forensic financial research firm, today announces it is launching the Hindenburg Tether Bounty Program (the “Program”) – a reward of up to $1,000,000 for information leading to previously undisclosed details about cryptocurrency “stablecoin” Tether’s backing."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·hindenburgresearch.com·
Hindenburg Research Announces $1,000,000 Bounty For Details On Tether’s Backing
Tether Trials Solution to Comply With FATF Travel Rule
Tether Trials Solution to Comply With FATF Travel Rule
Tether, will test trial a solution that will allow it to comply with the travel rule proposed by the Financial Action Task Force (FATF). The solution that will be tested, provided by Notabene, a software company that offers compliance solutions, will allow this information to be relayed between virtual asset service providers (VASPs). This solution aims to make tether (USDT) more friendly to law enforcement agencies all around the world.
#Stablecoins#Tether#Regulation#CryptoAssets#Fintech#DFC
·news.bitcoin.com·
Tether Trials Solution to Comply With FATF Travel Rule
AgAu.io: The Peer-To-Peer Electronic Money System
AgAu.io: The Peer-To-Peer Electronic Money System
"The company AgAu AG was founded in 2018 and borrowed its name from the merger of the two atomic symbols “Ag” (for Silver) and “Au” (for Gold). As AgAu we plan to issue digital tokens corresponding to the direct ownership of allocated silver and gold bullions in Switzerland. We aim to be the easiest way to transact the direct ownership of allocated and redeemable physical LBMA quality gold and silver. The precious metals are audited and secured in regulated private vaults outside the banking system."
#Fintech#CryptoAssets#Stablecoins#DFC
·agau.io·
AgAu.io: The Peer-To-Peer Electronic Money System
Moneyness: Does it make a difference if Tether lends out new USDt?
Moneyness: Does it make a difference if Tether lends out new USDt?
"Tether says in its terms of service that it only creates new stablecoin tokens, USDt, in acceptance for money. That is, to get $1 worth of USDt from Tether, you need to send it $1 in actual U.S. dollars. But in reality, Tether does not seem to be waiting for deposits to roll in before issuing new USDt. As the FT's Kadhim Shubber reports, it is directly lending new USDt out, much like how a bank puts new dollar IOUs into circulation by lending them out."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·jpkoning.blogspot.com·
Moneyness: Does it make a difference if Tether lends out new USDt?
Tether’s bad month: CFTC, Bloomberg, Reggie Fowler
Tether’s bad month: CFTC, Bloomberg, Reggie Fowler
"As well as the settlement with the CFTC and a $41 million fine this month (covered here two days ago), everyone’s favourite stablecoin issuer, Tether Inc., had a front-cover story in Bloomberg Businessweek — confirming quite a few things that people like me have been saying over the past few years."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·davidgerard.co.uk·
Tether’s bad month: CFTC, Bloomberg, Reggie Fowler
Questions remain on USDC's reserves
Questions remain on USDC's reserves
In August, Circle announced it would shift the assets backing its USDC stablecoin out of commercial paper and only invest in "cash and short US Treasuries." However, although its latest attestation shows this transition is complete, it is not classifying anything that matures in 90 days or less as CP (see below). Tether is already reporting at this level of granularity, disaggregating "cash and cash equivalents" into its component parts, so why can't Circle do the same?
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#DFC
·twitter.com·
Questions remain on USDC's reserves
President’s Working Group on Financial Markets Releases Stablecoin Report
President’s Working Group on Financial Markets Releases Stablecoin Report
The US President’s Working Group on Financial Markets (PWG) released a report on stablecoins. It concluded that “the absence of appropriate [stablecoin] oversight presents risks to users and the broader system... and current oversight is inconsistent and fragmented, with some stablecoins effectively falling outside the regulatory perimeter. It called on Congress to create legislation to “require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level.”
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·home.treasury.gov·
President’s Working Group on Financial Markets Releases Stablecoin Report
Tether Papers: This is exactly who acquired 70% of all USDT ever issued
Tether Papers: This is exactly who acquired 70% of all USDT ever issued
"We’ve spent months cataloguing and investigating every single USDT ever sent to and from Tether, across the eight blockchain and layers on which it currently exists: Omni (Bitcoin), Liquid (Bitcoin), Ethereum, Tron, Simple Ledger Protocol (Bitcoin Cash), EOS, Solana, and Algorand. Here’s what we found."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·protos.com·
Tether Papers: This is exactly who acquired 70% of all USDT ever issued
Run-Proof Stablecoins
Run-Proof Stablecoins
David Andolfatto explains how the theory of bank runs suggests that stablecoins might be rendered run-proof if their liabilities are properly designed. For example, a credible promise to suspend redemptions when redemption activity is abnormally high can serve to discourage runs. He describes how "smart contracts" could be used to bolster the credibility of the threat of suspending redemptions in the event of abnormal redemption activity, and may actually prevent any runs from occurring in the first place.
#Fintech#CryptoAssets#Stablecoins#SmartContracts#DFC
·andolfatto.blogspot.com·
Run-Proof Stablecoins
Built to Fail: The Inherent Fragility of Algorithmic Stablecoins
Built to Fail: The Inherent Fragility of Algorithmic Stablecoins
This Article argues that algorithmic stablecoins are fundamentally flawed because they rely on three factors which history has shown to be impossible to control. First, they require a support level of demand for operational stability. Second, they rely on independent actors with market incentives to perform price-stabilizing arbitrage. Finally, they require reliable price information at all times. None of these factors are certain, and all of them have proven to be historically tenuous in the context of financial crises or periods of extreme volatility.
#Fintech#CryptoAssets#Stablecoins#DFC
·wakeforestlawreview.com·
Built to Fail: The Inherent Fragility of Algorithmic Stablecoins
CSBS Model Money Transmission Modernization Act
CSBS Model Money Transmission Modernization Act
"The Model Money Transmission Modernization Act, also known as the Money Transmitter Model Law, is a single set of nationwide standards and requirements created by industry and state experts. The law was approved in full by the CSBS Board of Directors in August 2021. As we move forward, CSBS will work to ensure that implementation among states is as uniform as possible, as states may require legislation, regulation or guidance changes to adopt the provisions contained in the law. Please refer to the materials below for the model law language. "
#Fintech#Payments#Regulation#Stablecoins#eMoney#UnitedStates#DFC
·csbs.org·
CSBS Model Money Transmission Modernization Act
Stablecoin Advocates Make Their Case to U.S. Banking Regulators
Stablecoin Advocates Make Their Case to U.S. Banking Regulators
Members of the USDF Consortium met with senior officials of the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. about how to issue a regulatory-compliant stablecoin. The group’s approach is purportedly consistent with the recommendations of the President’s Working Group that stablecoin be issued only by insured depository institutions. The Consortium’s USDForward (USDF) stablecoin would be issued, and backed, by dollar deposits at U.S. banks. The USDF Consortium is an association formed by Figure Technologies, JAM FINTOP, and a group of FDIC-insured banks. USDF is currently being used on the Provenance Blockchain in a limited scope to facilitate the real-time, bilateral settlement of transactions.
#Fintech#Stablecoins#CryptoAssets#Regulation#DFC
·bloomberg.com·
Stablecoin Advocates Make Their Case to U.S. Banking Regulators
Are US regulators about to get tough on crypto?
Are US regulators about to get tough on crypto?
U.S. federal bank regulatory agencies issued a statement summarizing their interagency crypto-asset "policy sprints" and providing a roadmap of future work related to crypto-assets. It summarizes the agencies' plan to provide greater clarity throughout 2022 on whether certain crypto-related activities conducted by banking organizations are legally permissible, and related expectations for safety and soundness, consumer protection, and compliance with existing law and regulations. The focus includes crypto-asset safekeeping and traditional custody services, ancillary custody services including staking, facilitating crypto-asset lending and distributed ledger technology governance services, facilitation of customer purchases and sales of crypto-assets, loans collateralized by crypto-assets, issuance and distribution of stablecoins, and activities involving the holding of crypto-assets on balance sheet.
#Fintech#CryptoAssets#Stablecoins#Regulation#UnitedStates#DFC
·federalreserve.gov·
Are US regulators about to get tough on crypto?
Japanese banks to test digital currency
Japanese banks to test digital currency
A consortium of 74 Japanese firms, including the country's three mega-banks, said it aims to launch a yen-based digital currency in fiscal 2022 after beginning trials in coming months. The digital currency, tentatively called "DCJPY", will be backed by bank deposits and use a common platform to speed up large-scale fund transfers and settlement among companies. Crypto exchange DeCurret, which is leading the consortium, published a progress report and white paper.
#Fintech#CryptoAssets#Stablecoins#Japan#DFC
·finextra.com·
Japanese banks to test digital currency
Setting Standards for Stablecoin Reserves
Setting Standards for Stablecoin Reserves
This paper, co-authored by Diem's Chief Economist Christian Catalini, proposes that stablecoin issuers should comply with the capital and liquidity standards encoded in the Basel accords, and put aside appropriate capital buffers to mitigate credit risk, market risk, and operational risk. Furthermore, stablecoin issuers should hold appropriate liquidity to mitigate sudden redemptions and outflows. Compliance could be achieved with a balance sheet centered around short-maturity, high-quality, and liquid assets such as 3 months or less marketable government securities.
#Fintech#CryptoAssets#Stablecoins#Regulation#DFC
·papers.ssrn.com·
Setting Standards for Stablecoin Reserves
What is the Value Proposition of Stablecoins for Financial Inclusion?
What is the Value Proposition of Stablecoins for Financial Inclusion?
A new World Economic Forum white paper investigates the benefits and limitations of stablecoins for supporting financial inclusion in historically excluded or underserved populations. It concludes that, overall, stablecoins do not present features or capabilities that significantly reduce barriers to financial inclusion compared to pre-existing options, once accounting for consistent legal and compliance requirements. Stablecoins are subject to many of the same adoption and inclusion hurdles as other forms of retail finance, such as reliable internet and electricity, digital and financial literacy, and government identity documentation.
#Fintech#CryptoAssets#Stablecoins#FinancialInclusion#DFC
·www3.weforum.org·
What is the Value Proposition of Stablecoins for Financial Inclusion?
WhatsApp launches cryptocurrency payments pilot in the US
WhatsApp launches cryptocurrency payments pilot in the US
Meta's WhatsApp has launched a pilot that lets a “limited number” of people in the US send and receive money instantly from within a chat using Pax Dollars (USDP) stablecoins. The feature is powered by Meta's Novi, digital wallet launched as a pilot six weeks ago. There are no fees for sending or receiving money, no limits on how often payments can be sent, and no fees to keep a balance in a Novi account or to withdraw it to a linked bank account.
#Fintech#CryptoAssets#Stablecoins#Paxos#Facebook#Novi#DFC
·theverge.com·
WhatsApp launches cryptocurrency payments pilot in the US
SEBA Bank Launches Regulated Gold Token to Enable Digital Ownership of Physical Gold
SEBA Bank Launches Regulated Gold Token to Enable Digital Ownership of Physical Gold
Swiss digital asset banking platform SEBA is offering a stablecoin backed by physical gold for any-time on-demand delivery of the physical metal. It was developed in conjunction with Argor-Heraeus, a leading service provider in the precious metal industry, and aXedras, a blockchain-based precious metal platform.
#Fintech#CryptoAssets#Stablecoins#Tokenization#Commodities#DFC
·seba.swiss·
SEBA Bank Launches Regulated Gold Token to Enable Digital Ownership of Physical Gold