Lưu trữ cho từ khóa: Stablecoin

DeFi

Market maker DWF Labs hints at synthetic stablecoin

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Market maker DWF Labs hints at synthetic stablecoin

Crypto market maker DWF Labs has plans to launch a stablecoin product that may compete with Ethena’s USDE.

According to Andrei Grachev, co-founder of DWF Labs, the crypto trading and market-making startup has finalized the design for its synthetic stablecoin.

Synthetic stablecoins operate on a soft peg with fiat currencies like the U.S. dollar and are underpinned by collateral assets like Bitcoin (BTC) and other assigned cryptocurrencies.

To maintain parity, synthetic stablecoins rely on opening and closing short-leveraged positions for the underlying collateral. While supposedly decentralized, this design could introduce extra volatility due to its dependence on perpetual trades tied to other tokens.

Grachev shared that DWF Labs’ synthetic dollar would support a basket of collaterals, including the three largest stablecoins: Tether (USDT), Circle’s USD Coin (USDC), and (DAI), which was recently rebranded to USDS by Maker’s switch to the name Sky.

The X post from DWF Labs’ Grachev also listed other underlying assets, such as Ethena’s (USDE), BTC, Ethereum (ETH), a limited list of long-tail altcoins, and blue chips.

DWF Labs had not confirmed if the blue-chip category referred to non-fungible tokens, although the label suggests highly acclaimed NFTs may be involved.

Entering the synthetic dollar market could position DWF Labs against Ethena, the issuer of crypto’s largest on-chain collateralized stablecoin, USDE. Launched for public trading in February, Ethena’s offering has captured $2.69 billion in deposits, with pledged monthly attestations for its product.

Most of this total value locked exists on Ethereum’s blockchain, valued at about $2.58 billion, according to DefiLlama, with the remainder spread across networks like Mantle, Arbitrum, and Blast.

DWF Labs could face the same skepticism that synthetic dollar protocols have encountered within the crypto community. Following Ethena’s launch, decentralized finance leaders like Fantom developer Andre Cronje compared the sector to TerraUSD, the algorithmic stablecoin involved in a $60 billion ecosystem collapse in 2022.

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Bitcoin

Alan Howard’s son secures $25m for crypto venture fund

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Daniel Howard and Bhavin Vaid have launched Halo Capital, a $25 million venture fund focused on early-stage crypto projects across the digital asset ecosystem.

Daniel Howard, son of British hedge-fund billionaire Alan Howard, and colleague Bhavin Vaid have raised $25 million for Halo Capital, a new venture-capital fund focused on early-stage projects in the digital-asset sector, Bloomberg has learned.

While both Howard and Vaid declined to disclose Halo’s investors and partners due to privacy concerns, Howard acknowledged that his family background plays a role but stressed that Halo’s unique approach is key to attracting investors.

The New York-based fund will invest across the digital ecosystem, the report says, adding that the scope of interests includes Bitcoin-centric products as well as decentralized artificial intelligence.

“Our ability to take a differentiated approach, and a research and data-driven one, is going to be vital.”

Bhavin Vaid, Halo Capital co-founder

Halo focuses on distinctive approach

Halo has already invested in several projects, including Bima Labs, the developer of the Bitcoin-backed stablecoin USBD, and Andrena, a wireless internet provider focused on developing a protocol for decentralized physical infrastructure networks to provide broadband. The fund also recruited 20 partners to advise it and its portfolio companies.

Emphasizing the need for a research-driven approach, Vaid noted that “a lot of the existing funds in the space are potentially just biased, based on other investments they might have made over the past three to five years.”

Alan Howard, already a prominent crypto backer, helped establish Brevan Howard’s crypto arm, BH Digital, in 2021. In mid-July, crypto.news reported that Brevan Howard Asset Management’s crypto fund saw a 20% gain in the first half of 2024, driven by increased institutional interest amid rising crypto prices.

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Altcoin

Dragonfly-incubated stablecoin AUSD goes live on Sui

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The Sui blockchain is broadening its stablecoin offerings by adding Agora’s AUSD, following its earlier launches on Ethereum and Avalanche.

Agora, a stablecoin company backed by Dragonfly, has launched its Agora Dollar (AUSD) stablecoin on Sui, the layer-1 blockchain network following the prior rollout on Ethereum and Avalanche.

The launch is part of Sui’s strategy to bolster its decentralized finance ecosystem and attract institutional users. To date, nearly $60 million in AUSD has been minted, with the majority of liquidity concentrated on the Ethereum network.

Agora Dollar’s concentration among blockchains | Source: DefiLlama

By integrating first-class assets like AUSD natively on the network, Sui is empowering developers and offering essential access to DeFi for a new class of institutional users.

Gap Kim, Global Head of Marketing for Sui Foundation.

As of Sept. 5, over 62% of AUSD’s liquidity is on Ethereum, with 37% on Avalanche, according to data from DefiLlama.

Agora bets on compliance with VanEck

In April, Agora raised $12 million in funding led by Dragonfly to fuel its stablecoin platform launch, emphasizing regulatory compliance. The funding round saw participation from other prominent investors, including Wintermute Ventures, Galaxy, and Consensys. Agora’s reserve fund is managed by VanEck, one of the world’s largest exchange-traded fund issuers, further cementing the company’s commitment to compliance.

Agora’s move to Sui aligns with the blockchain’s recent efforts to enhance its offerings. The launch follows Grayscale Investments’ introduction of two crypto investment trusts, including one offering exposure to Sui, which is “redefining the smart contract blockchain,” according to Rayhaneh Sharif-Askary, head of product & research at Grayscale.

Looking ahead, Agora plans to continue expanding its reach by launching AUSD on other blockchains such as Arbitrum and Optimism, further solidifying its presence in the decentralized finance space.

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DeFi

SWIFT-like bridge for stablecoins UDPN adds support for Australian Digital Dollar

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The Universal Digital Payments Network has announced the integration of the Australian Digital Dollar into its platform, expanding its support for regulated stablecoins.

Launched in Davos as a bridge between centralized and decentralized digital currency systems, the Universal Digital Payments Network is expanding its list of supported assets with the integration of the Australian Digital Dollar, a multi-chain stablecoin.

In a Sept. 3 blog announcement, UDPN announced that AUDD would join the U.S. dollar and euro within its basket of supported assets, aiming to meet the growing demands of the digital economy by providing businesses with an alternative for managing financial operations.

UDPN adds support for Australian stablecoin

AUDD, which is collateralized one-to-one by Australian dollars and accessible on networks like Stellar, XRP Ledger, and Ethereum, was developed by fintech firm AUDC. Effie Dimitropoulos, CEO of AUDC, stated that the collaboration is expected to “accelerate the adoption of AUDD both within Australia and globally, reducing friction and enhancing the flexibility of international payments.”

Launched in 2023 as a SWIFT-style system for bank-issued and regulated digital currencies, UDPN has already seen tier-1 banks like Deutsche Bank and Standard Chartered’s SC Ventures test the network for transferring and swapping USD Coin (USDC) stablecoins.

Developed by GFT Group and Hong Kong-based Red Date Technology, UDPN has attracted dozens of partners, including financial lenders from the U.S., Australia, Latin America, and Europe, who are running their own tests on the network.

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Công nghệ

Report: Blockchain is poised to overhaul global payment systems

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According to a Binance report, blockchain technology is set to transform the global payments landscape by addressing inefficiencies in traditional financial systems.

The Binance research report highlights that while current payment methods, such as Visa and Mastercard, offer the convenience of near-instantaneous payment authorization, actual settlement times often lag, sometimes by several days.

This delay is especially pronounced in cross-border transactions, where communication between banks in different countries can extend settlement times.

In contrast, blockchain-based payments offer near-instant settlement. The report cites a 2021 pilot conducted by Visa and Crypto.com in Australia, where the use of USDC (USDC) and the Ethereum (ETH) blockchain allowed cross-border transactions to be settled in a fraction of the time traditionally required.

Blockchain payments are cheaper than traditional means of payment

The report highlighted some of the cost advantages of blockchain payments. Traditional remittance services charge high fees, particularly in regions like Sub-Saharan Africa, where the average cost of sending money is 7.73%. 

Using blockchain for payments is becoming increasingly popular due to its significantly lower costs compared to traditional methods.

By comparison, blockchain networks like Solana (SOL) enable transactions at a fraction of the cost. Sending stablecoins via Solana incurs minimal fees, often amounting to just a fraction of a cent.

Stablecoin popularity

Stablecoins have become essential for blockchain payments, with the market settling over $10.8 trillion in transactions in 2023, according to the report. When excluding automated activities, the figure is $2.3 trillion.

Source: Coinbase, Binance Research, as of August 2024

The stablecoin market has grown steadily, with a combined market cap of over $160 billion, led by Tether (USDT) and USDC, which dominate 73% and 21% of the market, respectively.

Challenges in blockchain infrastructure

The report noted that current blockchain infrastructures have their challenges. Scalability remains a key issue, with even the most advanced blockchains like Solana struggling to match the transaction processing speeds of established payment networks. 

Solana, the report reveals, has experienced multiple outages since its launch, raising concerns about the reliability of blockchain technology for large-scale institutional use.

“Since the mainnet launched in 2020, Solana has experienced 7 major outages which brought block production to a halt, with the latest occurring in February 2024. Such growing pain problems would understandably cause institutions to be cautious about relying on blockchains for key business operations, such as payments.”

Binance

Despite these challenges, the report suggests blockchains offer a promising alternative to traditional financial systems. Their transparency and decentralized nature foster greater trust and security in financial institutions, qualities that are increasingly sought after in a global financial system where centralization and control can be exploited for geopolitical purposes.

Looking ahead, the report envisions a future where blockchain technology plays a central role in global payments, particularly remittances. As the technology matures and regulatory frameworks evolve, businesses and consumers may increasingly opt for blockchain-based transactions over traditional methods. 

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Công nghệ

Celo ecosystem gets new foundation to boost stablecoin use

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The Stabila Foundation has launched a new initiative to boost stablecoin adoption within the Celo ecosystem, aiming to drive real-world use cases for the network.

The Celo (CELO) blockchain ecosystem has welcomed a new foundation focused on increasing the adoption and use of stablecoins within its network.

The Stabila Foundation, funded by the Celo community, aims to enhance the ecosystem’s financial stability by promoting the real-world utility of stablecoins, particularly in emerging markets such as Africa, Latin America, and Southeast Asia, according to an Aug. 28 press release shared with crypto.news.

“We aim to achieve these goals by collaborating closely with stablecoin issuers, ecosystem applications, infrastructure partners, merchants, and everyday users.”

The Stabila Foundation

In addition to the Celo community, the foundation has secured backing from Allbridge Core, Angle Labs, and Wormhole Foundation.

Celo seeks more stablecoin activity

The foundation will focus its resources on offering incentives for stablecoin liquidity pools, supporting educational campaigns, and backing projects that align with its mission. By collaborating with stablecoin issuers, the foundation intends to increase transaction volumes and user growth on Celo, positioning it as a leading platform for stablecoins, the press release reads.

Celo already supports major stablecoins such as (USDT) and (USDC), which collectively account for over 85% of the stablecoin market. However, the foundation seeks to expand the ecosystem even further by encouraging the use of a diverse range of local currency stablecoins, including those from Mento Labs, Angle Labs, and BRLA Digital.

Total Celo-based stablecoins market capitalization as of Aug. 28 | Source: DefiLlama

According to data from DefiLlama, the total market capitalization of stablecoins on the Celo network stands at $337.57 million, with Tether’s USDT accounting for over 75% of the market.

Commenting on the foundation’s launch, Paul Kremsky, global head of business development at Cumberland, noted that stablecoins have emerged as the “killer use case of blockchain,” emphasizing that expanding stablecoins beyond the USD is an “important effort that will bring this infrastructure to the whole world, including regions that are sorely underserved by traditional banking rails.”

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Pháp Lý

Russia nears crypto exchange trials to bypass sanctions: report

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Russia is said to begin trials of crypto exchanges and token transactions for cross-border payments to mitigate the impact of international sanctions.

Russia appears to be days from starting trials of crypto exchanges and token transactions for cross-border deals in a bid to bypass challenges faced under international sanctions, Bloomberg has learned, citing sources familiar with the matter.

The trials, scheduled to start on Sept. 1, will involve using the National Payment Card System to facilitate the exchange between Russian rubles and cryptocurrencies, the sources say. This initiative follows recent legislation passed by Russia’s parliament that legalizes crypto mining and establishes a framework for testing digital tokens for cross-border payments under the supervision of the central bank.

The move comes as Russian businesses face increasing difficulties in paying foreign suppliers and receiving payments for exports due to sanctions. Some major Russian metal producers have already started using stablecoins for transactions with China, as traditional payment methods have become constrained.

In mid-August, reports indicated that Russia is planning to establish at least two domestic crypto exchanges, with one possibly utilizing the infrastructure of the St. Petersburg International Mercantile Exchange and the other potentially based in Moscow, though details remain unclear.

The National Payment Card System, created by the central bank in 2014, operates Mir cards and Russian instant interbank payment systems. Officials selected this network for the crypto exchange trials due to its existing infrastructure, which includes interbank settlement and clearing capabilities, the sources said.

If successful, the trials could lead to the launch of crypto platforms by the Moscow Exchange and the St. Petersburg Currency Exchange next year, the sources added. The experiment will allow the use of any existing crypto, according to those familiar with the plans.

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Pháp Lý

Russia’s central bank set to legalize crypto for qualified investors

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The Bank of Russia appears to be moving forward with plans to test cross-border crypto deals for qualified investors.

Russia‘s central bank, the Bank of Russia, is considering amending the law to introduce a new category of “particularly qualified investors,” which would allow these individuals to trade crypto as the country explores the use of cryptocurrencies for cross-border transactions.

In an interview published Monday, Aug. 26, in the Russian newspaper Izvestia, Alexey Guznov, the Bank of Russia’s state secretary and deputy governor, indicated a possible shift in the nation’s stance on cryptocurrencies. Guznov disclosed that the central bank is contemplating the possibility of permitting a limited group of specially qualified investors to participate in buying and selling cryptocurrencies.

“There is currently a discussion about allowing a limited group of particularly qualified investors to trade digital currencies, enabling them to buy and sell such assets. However, this is a topic for the next stage. In the meantime, all potential risks need to be thoroughly analyzed.”

Alexey Guznov, Bank of Russia’s state secretary and deputy governor

Currently, there is no legal framework defining these investors, but the central bank is reportedly considering legislative changes to establish this new category.

The central bank is also showing openness to the use of stablecoins for international trade, provided they meet certain criteria. According to Guznov, if a stablecoin is backed by an obligated party and resembles digital financial assets — centralized, tokenized assets issued in Russia — then it can already be used for cross-border settlements under current laws. However, algorithmically managed stablecoins without a backing entity would be treated as cryptocurrencies and would require an experimental regime for cross-border use, he added.

Guznov’s remarks come shortly after reports surfaced saying that Russia is considering the establishment of at least two domestic crypto exchanges, potentially utilizing the infrastructure of traditional stock exchanges in Moscow and Saint Petersburg. The primary objective of these exchanges, however, is not to facilitate crypto trading but to develop stablecoins, including those pegged to the Chinese yuan and a basket of BRICS currencies.

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Pháp Lý

Russia considers launching trading platforms for stablecoins on domestic stock exchanges: report

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Russia is set to launch two new crypto exchanges, one in St. Petersburg and another in Moscow, with a focus on stablecoin development.

As sanctions continue to impact Russia‘s financial sector, the country is now planning to establish at least two domestic crypto exchanges, with one potentially utilizing the infrastructure of the St. Petersburg International Mercantile Exchange and the other to be set up in Moscow, though its exact framework remains undecided, Russia’s newspaper Kommersant reports, citing sources familiar with the matter.

The Moscow-based crypto exchange could either integrate with the stock Moscow exchange or operate under a new experimental legal regime. The primary goal for these exchanges, however, is not to facilitate crypto trading, but rather to develop stablecoins, including those pegged to the Chinese yuan and a basket of BRICS currencies.

Thus far, the cryptocurrency industry in Russia is regulated by a local bill “On Digital Financial Assets,” which provides a framework for digital financial assets but lacks specific guidelines for crypto exchanges. As a result, the new exchanges will initially operate as a pilot under the experimental legal regime, an official said.

Once approved, the exchanges are expected to launch with a limited user base before gradually expanding to include major exporters, importers, and affiliated businesses, people familiar with the plans say.

Russia advances crypto exchanges amid regulatory talks

The establishment of crypto exchanges aligns with ongoing discussions between Russia’s Finance Ministry and the country’s central bank. Finance Minister Anton Siluanov confirmed that while negotiations are progressing, no final decisions have been made.

The development follows a recent legislative move by President Vladimir Putin, who signed a law in early August legalizing crypto mining in a bid to create a legal framework for the issuance and circulation of cryptocurrencies.

In July, crypto.news reported that Russian lawmakers are exploring the introduction of gold-backed tokenized assets, directly managed by the central bank, as a solution for persistent cross-border payment challenges.

Ongoing discussions, involving senior officials and key banking figures, indicate that Russia is exploring this approach as a means to provide businesses with a stable mechanism for international transactions. However, this initiative has not yet progressed to the development stage at the state level.

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