Stablecoins

Tether Launches New Stablecoin Pegged to UAE Dirham

Wednesday. August 21 at 3:30 PM

1 min. read

Tether, the leading stablecoin provider in the digital asset sector, has revealed intentions to introduce a novel stablecoin linked to the United Arab Emirates dirham (AED). The upcoming stablecoin, as per the disclosed press release to Cointelegraph, will be developed in partnership with UAE-based firms Phoenix Group and Green Acorn Investments. This collaboration seeks to create a digital representation of the dirham currency, fully supported by liquid reserves in the UAE. By expanding into the UAE financial market with the dirham-pegged stablecoin, Tether aims to offer users a cost-efficient means to access the advantages of the AED. The initiative is anticipated to streamline international trade and remittances, minimize transaction costs, and provide a safeguard against currency fluctuations. Paolo Ardoino, Tether's CEO, expressed satisfaction in broadening the stablecoin options with the dirham-pegged variant, in collaboration with Phoenix Group, to furnish businesses and individuals with a vital transaction tool.

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Circle Moves Global Headquarters to NYC Ahead of IPO

Saturday. September 14 at 8:30 PM

Stablecoin issuer Circle is relocating its global headquarters to New York City in preparation for its upcoming Initial Public Offering (IPO). The company, known for issuing the second-largest stablecoin USDC, will be situated in the top floors of 1 World Trade Center. This strategic move, announced by Circle's CEO Jeremy Allaire, signifies the vital role stablecoin issuers play in bridging traditional fiat and the growing cryptocurrency market. With plans to finalize the move by early 2025, Circle's IPO filing in January 2024 awaits approval from the Securities and Exchange Commission (SEC). This relocation to the financial hub of Wall Street after 11 years of establishment aims to propel decentralized internet development and enhance the utility of the US dollar. Despite regulatory uncertainties surrounding cryptocurrency in the US, Allaire remains optimistic about the country's potential to lead the global crypto landscape, especially with the upcoming presidential elections in 2024.

Stablecoins

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.

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