Stablecoins

Innovative Risk-Based Capital Model for Stablecoins

Friday. August 16 at 5:30 AM

1 min. read

Circle, the creator of USD Coin (USDC), has introduced a whitepaper titled “Risk-based Capital for Stable Value Tokens,” proposing a novel risk-based capital management system for stablecoins and digital cash tokens. The paper suggests that stablecoins require sufficient capital reserves beyond current Basel banking regulations to address unique risks like market price fluctuations, secondary market volatility, and operational and technological risks. The authors advocate for the Token Capital Adequacy Framework (TCAF) to replace fixed-ratio risk standards with a dynamic, stakeholder-informed model. TCAF considers factors like blockchain performance and cybersecurity, potentially leading to more tailored capital requirements. The model aims to differentiate ongoing risks from mitigated ones, simplify risk management, promote cross-border risk standards, and incentivize responsible risk management. This innovative approach could revolutionize risk management in the digital asset sector.

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Tether's Recent USDT Minting Raises Concerns

Saturday. December 7 at 4:00 PM

Tether has recently minted 2 billion USDT on December 6, adding to its total of 19 billion since November 6. This move highlights Tether's dominance in providing liquidity to the crypto market but also raises transparency and systemic risks concerns. The minting spree has prompted speculation about Tether's reserves and potential over-supply. While Tether emphasizes strong backing and discussions with regulators, critics worry about market confidence. The recent mints aim to optimize liquidity by reallocating USDT to Ethereum. Despite benefits in sustaining liquidity, the shift in dynamics could impact smaller blockchains and increase network congestion. Tether's actions underscore the importance of transparency and reserve management in stablecoin operations, especially in a market where stablecoins play a significant role in daily trading activity.

Stablecoins

Holyheld Secures Funding for BRRR Protocol Expansion

Friday. December 6 at 1:00 AM

Holyheld, a Swiss crypto payments startup, has received funding to enhance its BRRR protocol. The investment comes from Toyota Ventures, TempleDAO, Tomahawk VC, and other prominent investors. The BRRR protocol aims to facilitate real-time global transactions by connecting blockchain networks with traditional payment systems. Holyheld's app, popular in Europe, allows users to use cryptocurrencies for daily purchases while maintaining self-custody of funds. The funding will support the expansion of the protocol to more clients and payment networks worldwide. Holyheld has integrated numerous crypto protocols and processed over $100M in volume since its launch. The company's goal is to enable crypto customers and fintechs to create innovative payment solutions using stablecoins. For more information about Holyheld, visit https://holyheld.com/ or https://holyheld.com/BRRR.

Stablecoins

Transition to Stablecoins: dtcpay's Strategic Move

Wednesday. December 4 at 12:00 AM

Singapore's dtcpay, a licensed payment platform, has announced a significant change effective 2025. The company will no longer accept Bitcoin and Ethereum as payment methods, focusing instead on stablecoins and fiat currencies for increased stability. This decision aims to provide a more secure payment environment in compliance with regulations. dtcpay plans to pivot towards stablecoins like USDT, USDC, WUSD, and FDUSD starting January 2025, aligning with the growing trend of digital payments. By embracing stablecoins, dtcpay aims to tap into the expanding market, as evidenced by a Chainalysis report showing significant payments made using these asset-backed tokens. This strategic shift underscores the importance of reliable digital payment methods, enhancing consumer trust and confidence in dtcpay's innovative services. Recognized for its progressive growth and industry accolades, dtcpay continues to lead in digital payment solutions, recently joining the Mastercard Starter Path programme and introducing a regulated POS system for crypto payments in Singapore.

Stablecoins

Crypto Investor's Bold Policy Change Request

Tuesday. December 3 at 10:00 PM

Crypto investor Charlene Woods, known as the 'cryptocurrency queen,' is urging President-elect Donald Trump to implement a major policy change that could skyrocket the industry next year. Woods, a luxury real estate agent and avid crypto investor, made the plea during an interview on FOX Business. She emphasized the need for no taxes on crypto to boost the market. Recently, Woods capitalized on the post-election 'Trump bump' by selling a portion of her holdings, enabling her to cover expenses like her dog's surgery and a private jet trip. Despite not disclosing the exact amount sold, Woods expressed her intention to reinvest in promising cryptocurrencies like Bitcoin and XRP. With earnings nearing $500,000, she plans to splurge on luxury items and exotic trips once she hits the $1 million mark. Woods also shared her past investment lessons and strategies for future gains in the volatile crypto market.

Stablecoins