Stablecoins

Expanding Access to Ondo USDY Token on Arbitrum

Wednesday. August 28 at 1:30 PM

1 min. read

Ondo Finance is broadening the availability of its Ondo US Dollar Yield Token (USDY) on Arbitrum, an Ethereum layer-2 scaling network. The USDY token offers users a chance to earn a maximum annual percentage return of 5.35% on stablecoins like USD Coin (USDC). Each USDY token is backed by bank deposits and short-term treasury bills. This move opens up opportunities for major decentralized finance applications to utilize tokenized US Treasuries. USDY currently boasts a total value locked of $364 million and is accessible on eight blockchain networks, including Ethereum and Solana. Ondo also provides another tokenized treasury product called Ondo Short-Term US Government Treasuries (OUSD). Tokenized treasury products, aiming to replicate low-risk yields from traditional money market funds, are gaining traction on blockchain networks. The market capitalization for such products has surged by 150% this year and is projected to hit $3 billion by 2024. Arbitrum is witnessing increased interest in tokenized RWAs, with Franklin Templeton recently expanding its offerings on the platform.

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Tether Appoints Jesse Spiro as Head of Government Affairs

Saturday. September 14 at 6:00 AM

Stablecoin issuer Tether has named Jesse Spiro as its head of government affairs, following his tenure at PayPal. In his new role, Spiro will oversee policy and engagement efforts with lawmakers, regulators, and stakeholders. Previously, he served as the head of regulatory relations for PayPal's blockchain division and held positions at Chainalysis focusing on policy and government affairs. Tether CEO Paolo Ardoino emphasized Spiro's appointment as a step towards responsible innovation in the crypto industry. Despite Tether's collaboration with the US Justice Department in combating financial crimes, Ripple's CEO Brad Garlinghouse has raised concerns about potential regulatory actions against the stablecoin issuer. Tether has faced scrutiny in the past, including a $41 million fine from the CFTC for misrepresenting reserve holdings. The hiring of Spiro coincides with ongoing legislative discussions on regulating stablecoins, such as the Lummis-Gillibrand Payment Stablecoin Act.

Stablecoins

The Impact of Stablecoins on Emerging Markets

Friday. September 13 at 4:00 PM

Stablecoins have revolutionized financial access in emerging markets, serving as vital tools for individuals seeking stability in volatile economies. A recent report, titled 'Stablecoins: The Emerging Market Story' and sponsored by Visa, revealed that stablecoins have transitioned from niche crypto instruments to mainstream financial assets. The study highlighted the significant surge in stablecoin usage in countries like Brazil, India, Indonesia, Nigeria, and Turkey, where traditional banking systems struggle to meet the needs of users. Particularly, Tether (USDT) emerged as the most trusted digital asset due to its widespread adoption and liquidity. The report emphasized the role of stablecoins in promoting financial inclusion in regions with limited access to traditional banking services, such as Argentina and Venezuela. Despite concerns about 'crypto-dollarization,' stablecoins are expected to play a more prominent role in global finance, offering secure and efficient financial solutions for cross-border transactions and remittances in developing economies.

Stablecoins

Integration of Arbitrum into Circle's Web3 Platform

Friday. September 13 at 2:00 PM

Circle Internet Financial, the operator of the US Dollar Coin (USDC) stablecoin, has incorporated the layer-2 scaling chain Arbitrum into its Web3 infrastructure platform. This integration, as announced in a blog post on Sept. 12, introduces USDC-focused programmable wallets, smart contract tools, and gas-fee abstraction to Arbitrum. With a TVL of approximately $2.5 billion, Arbitrum stands as the largest layer 2 solution on Ethereum according to DefiLlama. Circle's chief product officer, Nikhil Chandhok, highlighted the platform's ability to facilitate the development of seamless in-app wallets supporting USDC for various global use cases. Circle's Web3 tooling is also linked with other blockchain networks like Avalanche, Ethereum, Polygon PoS, and Solana. This move by Circle aims to boost USDC adoption and compete with other stablecoins like Tether's USDT and PayPal's PYUSD. The integration of Arbitrum with Circle's platform enables applications to mint USDC directly on the layer-2, eliminating the need for bridging from other chains. Arbitrum's significance in the DeFi space and its growing adoption in tokenized real-world assets further solidify its position as a key player in the crypto ecosystem.

Stablecoins

Legal Recognition of Tether as Property in the UK

Friday. September 13 at 12:30 PM

The United Kingdom High Court has declared Tether as property, marking the first ruling on cryptocurrency under English law after a trial. Tether's legal status was a key issue in a case involving a fraud victim whose stolen crypto, including Tether, was laundered through various exchanges. The court stated that USDT holds property rights under English law and can be traced and considered trust property. This decision aligns with previous judgments and the Law Commission's stance on digital assets as property. Despite acknowledging the fraud, the court ruled that the victim failed to prove enrichment by a Thai exchange. Legal experts emphasize the importance of clear evidence presentation in such cases. The court also heard about the victim's significant financial losses and ongoing legal actions against multiple parties involved in the fraud.

Stablecoins