DFC

5260 bookmarks
Custom sorting
There Was No Terra ‘Attack’
There Was No Terra ‘Attack’
"Though rumors about BlackRock and Citadel are just that, it does seem very plausible that some large mainstream hedge fund was involved in the Terra depeg. That would be a major double-edged sword. On the one hand, it would mean crypto is regarded as a robust and trustworthy enough ecosystem that mainstream finance is willing to risk shorting it. The emergence of more such shorts would, furthermore, benefit the ecosystem long-term by providing a profit motive for asking hard questions about projects."
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·coindesk.com·
There Was No Terra ‘Attack’
The Hong Kong Dollar Is the Best Stablecoin. Sorry, Terra and Luna
The Hong Kong Dollar Is the Best Stablecoin. Sorry, Terra and Luna
"Pegged to the US dollar for nearly four decades, the currency in the Asian financial center is a stablecoin, albeit of the paper variety. Most days it relies — just like UST — on arbitrage to hold its value at 7.8 to the dollar. But there are two key differences. The Hong Kong Monetary Authority runs a pure currency board. All of HKMA’s monetary base is backed 110% by US dollar assets. Second, while fixing the exchange rate, the authority deliberately lets interest rates float freely to absorb pressures on the peg. When the local currency gets sold off, there’s a capital flight from Hong Kong. But that automatically raises interest rates enough to lure buyers back."
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·bloomberg.com·
The Hong Kong Dollar Is the Best Stablecoin. Sorry, Terra and Luna
Tether’s accountant waves red flag
Tether’s accountant waves red flag
The language used by Tether’s accountant in the latest quarterly attestation report suggests it’s worried about the future existence of the stablecoin. MHA Cayman used ‘going concern’ language, a form of words that implies a business is stable enough to meet its obligations for the time being, but which suggests the accountant is taking a step back in judging the business as viable. The accountant added other new language to Tether’s attestation, suggesting significant uncertainty with respect to the valuation of Tether’s assets and its exposure to possible counterparty risks.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·newmoneyreview.com·
Tether’s accountant waves red flag
Circle to Issue Weekly USDC Reserve Reports
Circle to Issue Weekly USDC Reserve Reports
Circle CEO Jeremy Allaire announced that company will now provide weekly attestations concerning stablecoin USD Coin (USDC) reserves and liquidity. According to the latest week's figures, all $52.9 billion USDC in circulation are fully backed by cash ($12.8 billion) and short-dated U.S. Treasury securities ($40.2 billion expressed in terms of fair market value) held at U.S. regulated financial institutions on behalf of USDC holders. This weekly reporting is in addition to the the monthly attestation reports which, like Tether's, are published with long lags.  The last one (covering the accounts as of March 31, 2022) was published at the end of April.
#Fintech#CryptoAssets#Stablecoins#Tether#Circle#DFC
·news.bitcoin.com·
Circle to Issue Weekly USDC Reserve Reports
Deceptive representations involving the FDIC’s name or logo or deposit insurance
Deceptive representations involving the FDIC’s name or logo or deposit insurance
"Representations about deposit insurance may be particularly relevant with respect to new financial products or services, especially those involving new technologies such as digital assets, including crypto-assets. New technologies may yield significant benefits for consumers, workers, and small businesses. Nonetheless, especially with respect to new technologies, some market participants may seek to entice consumers to use their products or services by deceptively advertising that uninsured products or services are FDIC-insured. These misrepresentations disadvantage financial institutions that truthfully market FDIC-insured accounts to consumers. Such misrepresentations also harm consumers, who may find that their assets are not insured in a time of financial distress."
#Fintech#Stablecoins#FDIC#DFC
·consumerfinance.gov·
Deceptive representations involving the FDIC’s name or logo or deposit insurance
Putting the Terra stablecoin debacle into "tradfi" context
Putting the Terra stablecoin debacle into "tradfi" context
"It’s not really surprising that stablecoin issuers keep going back to essentially the same model: people have been fascinated by perpetual motion machines since time immemorial. No one, however, has ever succeeded in making one, because we live in a world of change, and perpetual motion machines only work if nothing ever changes."
#Fintech#CryptoAssets#Stablecoins#Terra#Tether#DFC
·the-blindspot.com·
Putting the Terra stablecoin debacle into "tradfi" context
Tether Required Recapitalization In May 2022
Tether Required Recapitalization In May 2022
"It is well-understood in the cryptocurrency community that Tether’s reserves are a polite fiction. If pushed on this, clueful members of the community, such as their co-conspirators, will (quietly) admit that Tether depends on a de facto guarantee of support from members of its consolidated group, such as Bitfinex, which can inject more equity at will. The community believes, based on prior experience, that there is appetite within the crypto community to conduct “private bailouts” to rescue their central bank if it comes under stress."
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·kalzumeus.com·
Tether Required Recapitalization In May 2022
Terra Is Back From Bankruptcy
Terra Is Back From Bankruptcy

One model of Terra goes like this: (1) Terra is a company. Not really — it’s a decentralized finance ecosystem, a blockchain, a bunch of independent developers working on diverse projects — but let’s just pretend for a minute. (In fact there is a company-ish thing called Terraform Labs which helps run Terra, and another company-ish thing called Luna Foundation Guard that keeps some of Terra’s money, but here I want to conceive of Terra as a whole as sort of a distributed company.) (2) The Luna token, which powers the Terra blockchain and is the currency of its ecosystem, is the equity of Terra, the stock in the Terra company. (3) The TerraUSD stablecoin (or UST), which was supposed to always be worth a dollar, and which maintained that peg by being exchangeable for $1 worth of Luna at market prices, is the debt of Terra. Like bonds of the company, or like deposits of a bank.

#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·bloomberg.com·
Terra Is Back From Bankruptcy
Tether Launches MXN₮ Tether Tokens Pegged to the Mexican Pesontugrik-tether-tokens-pegged-to-the-mexican-peso/
Tether Launches MXN₮ Tether Tokens Pegged to the Mexican Pesontugrik-tether-tokens-pegged-to-the-mexican-peso/
Tether is launching a stablecoin pegged to the Mexican Peso (MXN₮) with initial blockchain support to include Ethereum, Tron, and Polygon. MXN₮ will join three other fiat-currency pegged tokens Tether has in the market: the U.S. dollar-pegged USD₮, the Euro-pegged EUR₮, and the offshore Chinese Yuan-pegged CNH₮. This marks Tether’s entrance into Latin America that will provide a testing ground for onboarding new users in the Latin American market and will pave the way for future fiat-pegged currencies in the region to be launched.
#Fintech#CryptoAssets#Stablecoins#Tether#LATAM#DFC
·tether.to·
Tether Launches MXN₮ Tether Tokens Pegged to the Mexican Pesontugrik-tether-tokens-pegged-to-the-mexican-peso/
Barclays Warns that "Fully Collateralized" Tether May Be Prone to Downwards Spiral
Barclays Warns that "Fully Collateralized" Tether May Be Prone to Downwards Spiral
"“...Even this arbitrage might not bring the value of the stablecoin back to par, for two reasons. First, investors may begin to have doubts about the underlying collateral backing the token or, more likely, its liquidity and Tether's ability to sell it all without taking a haircut. Second is the practical cost of the arbitrage. The arbitrageur needs to buy the token at a discount in the secondary market and redeem it directly from Tether for its face value. As we note above, Tether does not make this easy or cheap, by charging redemption fees and imposing minimum fiat withdrawal amounts. Related to this, arbitrageurs may lack the balance sheet/capital to absorb all of the desired selling by liquidity seekers, as this sort of arbitrage activity requires deep pockets and a tolerance for potential mark-to-market losses, given the delay between purchase and redemption.”"
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·bloomberg.com·
Barclays Warns that "Fully Collateralized" Tether May Be Prone to Downwards Spiral
Terra to burn leftover UST (USTC) stablecoins in community pool
Terra to burn leftover UST (USTC) stablecoins in community pool
There is a total of about 11.2 billion circulated supply of TerraClassicUSD (USTC), currently trading below $0.04. About 1 billion USTC remaining in Terra’s community pool will be sent to the burn module and immediately discarded from supply. Terra will then bridge 371 million cross-chain USTC from Ethereum to Terra which will then be burned by Terraform Labs. “Eliminating a significant chunk of the excess UST supply at once will alleviate much of the peg pressure on UST,” the proposal said. The Terra governance has voted to create a new chain, which will ditch the algorithmic stablecoin USTC (formerly UST) in the old blockchain which has been renamed Terra Classic.
#Fintech#CryptoAssets#Stablecoins#Terra#DFC
·forkast.news·
Terra to burn leftover UST (USTC) stablecoins in community pool
There's no such thing as a safe stablecoin
There's no such thing as a safe stablecoin
"Stablecoins aren't stable. So-called algorithmic stablecoins crash and burn when people behave in ways the algorithm didn't expect. And reserved stablecoins fall off their pegs - in either direction. A stablecoin that does not stay on its peg is unstable. Not one of the stablecoins currently in circulation lives up to its name. "
#Fintech#CryptoAssets#Stablecoins#DFC
·coppolacomment.com·
There's no such thing as a safe stablecoin
Managing the failure of systemic Digital Settlement Asset (including stablecoin) firms
Managing the failure of systemic Digital Settlement Asset (including stablecoin) firms
The U.K. government proposes to amend its Financial Market Infrastructure Special Administration Regime to bring crypto-assets within the jurisdiction of the Bank of England while giving the institution the reins in the event of a collapsing stablecoin. One proposed amendment includes broadening the legal definition of a “payment system” to include crypto-assets, providing the central bank with regulatory powers under Part 5 of the 2009 Banking Act. The government clarified that the central bank will only step in during “systemic” collapses, which it defines as any “deficiencies in [a system’s] design or disruption to its operation may threaten the stability of the U.K. financial system or have significant consequences for businesses or other interests.”
#Fintech#CryptoAssets#Stablecoins#UnitedKingdom#DFC
·gov.uk·
Managing the failure of systemic Digital Settlement Asset (including stablecoin) firms
Japan Passes Crypto Stablecoin Bill That Enshrines Investor Protection
Japan Passes Crypto Stablecoin Bill That Enshrines Investor Protection
Japan’s parliament passed a bill that classifies stablecoins as digital money that must be linked to a currency that is legal tender and guarantee holders the right to redeem them at face value. The legal definition means stablecoins can only be issued by licensed banks, registered money transfer agents and trust companies. The new legal framework will take effect in a year, and Japan’s Financial Services Agency will introduce regulations governing stablecoin issuers in coming months.
#Fintech#CryptoAssets#Stablecoins#Japan#Regulation#DFC
·bloomberg.com·
Japan Passes Crypto Stablecoin Bill That Enshrines Investor Protection
Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
"In conclusion, design flaws in the no-arbitrage mechanism contributed to the failure of the IRON stablecoin. That said, the design flaws we uncover in this paper are not easily fixed. For instance, using the spot price as opposed to the ten-minute weighted-average price of TITAN in the creation of IRON is susceptible to manipulation of the spot price. It remains to be seen whether future generations of algorithmic stablecoins can improve these issues. For now, our results serve as useful reminder that some stablecoins are not stable at all, particularly for the users of smaller accounts who bought into the falling knife when IRON was tumbling."
#Fintech#CryptoAssets#Stablecoins#DFC
·federalreserve.gov·
Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
How to Build Trust – USDC Audits and Attestations
How to Build Trust – USDC Audits and Attestations
Circle's Chief Financial Officer explains the difference between stablecoin audits and attestations. An audit is an assurance engagement that verifies the accuracy of financial statements and is typically performed annually by a public accounting firm. The audit verifies the accuracy, completeness and composition of the reserve and tests the internal controls over financial reporting that ensure financial statement accuracy. In an attestation – the accounting firm “attests” to the accuracy of a set of statements. It is different from an audit (it makes little sense to test financial controls monthly, for example), but it provides the same standards of assurance over the statements.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#DFC
·circle.com·
How to Build Trust – USDC Audits and Attestations
How to Build Trust – USDC Audits and Attestations
How to Build Trust – USDC Audits and Attestations
Circle's Chief Financial Officer explains the difference between stablecoin audits and attestations. An audit is an assurance engagement that verifies the accuracy of financial statements and is typically performed annually by a public accounting firm. The audit verifies the accuracy, completeness and composition of the reserve and tests the internal controls over financial reporting that ensure financial statement accuracy. In an attestation – the accounting firm “attests” to the accuracy of a set of statements. It is different from an audit (it makes little sense to test financial controls monthly, for example), but it provides the same standards of assurance over the statements.
#Fintech#CryptoAssets#Stablecoins#Circle#USDC#DFC
·circle.com·
How to Build Trust – USDC Audits and Attestations
Justin Sun’s Terra-like Stablecoin Now Boasts Backing in Bitcoin, Tether, Tron - Decrypt
Justin Sun’s Terra-like Stablecoin Now Boasts Backing in Bitcoin, Tether, Tron - Decrypt
"Created as an algorithmic stablecoin, Justin Sun’s Terra-like stablecoin USDD is now shifting gears towards a hybrid model with improved transparency. USDD is now reportedly over-collateralized with a collateral ratio of 226.1%, according to data from Tron DAO, the organization responsible for maintaining the collateral of USDD."
#Fintech#CryptoAssets#Stablecoins#Tron#USDD#DFC
·decrypt.co·
Justin Sun’s Terra-like Stablecoin Now Boasts Backing in Bitcoin, Tether, Tron - Decrypt
Moneyness: Thoughts on Tether's $10.5 billion contraction
Moneyness: Thoughts on Tether's $10.5 billion contraction
"In addition to a difference in asset quality, I'd argue that USD Coin and Binance USD have better legal protections for users in the event of failure. Binance USD in particular operates under the New York stablecoin regulatory framework, which obliges Binance USD's issuer, Paxos, to operate as a trust. Trusts are effective mechanisms for ring-fencing customer funds from an issuer's other creditors."
#Fintech#CryptoAssets#Stablecoins#Tether#USDC#BUSD#DFC
·jpkoning.blogspot.com·
Moneyness: Thoughts on Tether's $10.5 billion contraction
New DFS Regulatory Guidance on the Issuance of U.S. Dollar-Backed Stablecoins
New DFS Regulatory Guidance on the Issuance of U.S. Dollar-Backed Stablecoins
The New York State Department of Financial Services (DFS) issued new Regulatory Guidance, setting foundational criteria for USD-backed stablecoins issued by DFS-regulated entities. Such stablecoins will have to be fully backed by reserves consisting only of U.S. Treasury securities and deposits at U.S. federal or state chartered banks,  held in segregated accounts and marked to market daily. Also, redemption at par must be guaranteed for all stablecoin holders.
#Fintech#CryptoAssets#Stablecoins#Regulation#UnitedStates#DFC
·dfs.ny.gov·
New DFS Regulatory Guidance on the Issuance of U.S. Dollar-Backed Stablecoins
Kansas City Fed Rescinds Master Account for Payments Firm, GOP Senator Says
Kansas City Fed Rescinds Master Account for Payments Firm, GOP Senator Says
"The Federal Reserve Bank of Kansas City revoked the so-called master account of a payments firm that came to prominence earlier this year when Republican senators raised questions over how that account had been granted, according to a letter sent by Sen. Pat Toomey (R., Pa.). In that letter, obtained by The Wall Street Journal, Mr. Toomey asked for more details about the Kansas City Fed’s decision to terminate the account for the Colorado-based Reserve Trust. The decision to grant that account had faced scrutiny earlier this year after Mr. Toomey and other Republicans questioned Sarah Bloom Raskin, then President’s Biden nominee for a seat on the Fed’s board of governors, over her possible role in helping Reserve Trust to secure the master account when she served on its board."
#Fintech#CryptoAssets#Stablecoins#Custodia#Regulation#UnitedStates#DFC
·wsj.com·
Kansas City Fed Rescinds Master Account for Payments Firm, GOP Senator Says
MoneyGram Launches Global Crypto-to-Cash Service on the Stellar Network
MoneyGram Launches Global Crypto-to-Cash Service on the Stellar Network
MoneyGram launched its stablecoin-powered payment channel, giving users the ability to send USD Coin (USDC) payments worldwide that can be withdrawn as cash by recipients. The service is being rolled out across several key remittance markets, including Canada, the United States, Kenya and the Philippines. Global cash-out functionality will be available by the end of June. To encourage adoption, the USDC transfer service will carry zero fees for the first 12 months. The new transfer service was built on the Stellar (XLM) blockchain and allows Stellar wallet users to send USDC to recipients around the world.
#Fintech#CryptoAssets#Stablecoins#Stellar#CrossBorder#DFC
·prnewswire.com·
MoneyGram Launches Global Crypto-to-Cash Service on the Stellar Network
Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
"Design flaws in the no-arbitrage mechanism contributed to the failure of the IRON stablecoin. That said, the design flaws we uncover in this paper are not easily fixed. For instance, using the spot price as opposed to the ten-minute weighted-average price of TITAN in the creation of IRON is susceptible to manipulation of the spot price. It remains to be seen whether future generations of algorithmic stablecoins can improve these issues. For now, our results serve as useful reminder that some stablecoins are not stable at all, particularly for the users of smaller accounts who bought into the falling knife when IRON was tumbling."
#Fintech#CryptoAssets#Stablecoins#DFC
·federalreserve.gov·
Runs on Algorithmic Stablecoins: Evidence from Iron, Titan, and Steel
Tether Condemns False Rumors About Its Commercial Paper Holdings
Tether Condemns False Rumors About Its Commercial Paper Holdings
Tether pushed back on rumors that the commercial paper held as USDT stablecoin reserves is 85% comprised of paper backed by (mostly shaky) Chinese or Asian firms. As of the most recent attestation report commercial paper made up about 25% of USDT's backing, and Tether is gradually switching maturing paper into short-maturity U.S. Treasury securities. Also, Tether's Celsius position has been liquidated with no losses to Tether, and Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·tether.to·
Tether Condemns False Rumors About Its Commercial Paper Holdings
Euro Coin (EUROC) is coming on June 30th
Euro Coin (EUROC) is coming on June 30th
Circle, the issuer of the USD Coin (USDC) dollar-pegged stablecoin, is launching a EUR-backed stablecoin (EUROC) on June 30. EUROC will be 100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros. Businesses will be able to mint EUROC straight from the source by depositing euros into their Circle Account using Silvergate’s Euro SEN network, after which it will be available to non-Circle Account users via digital asset exchanges and DeFi protocols. Additional deposit options are expected to be available later this year. EUROC will be issued as an ERC-20 token on the Ethereum blockchain, with support for additional blockchains expected later this year.
#Fintech#CryptoAssets#Stablecoins#Circle#DFC
·circle.com·
Euro Coin (EUROC) is coming on June 30th
Tether To Launch GBP₮, Tether Tokens Pegged to the British Pound Sterling
Tether To Launch GBP₮, Tether Tokens Pegged to the British Pound Sterling
Tether will be launching Tether tokens (“GBP₮”) pegged to British Pound Sterling in July. No further details were provided, such as how and where it will be backed. It will join four other fiat-currency pegged tokens Tether has in the market: the U.S. dollar-pegged USD₮, the Euro-pegged EUR₮, the offshore Chinese Yuan-pegged CNH₮, and MXN₮, the Mexican Peso-pegged stablecoin.
#Fintech#CryptoAssets#Stablecoins#Tether#DFC
·tether.to·
Tether To Launch GBP₮, Tether Tokens Pegged to the British Pound Sterling