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Mango crazy3/21/2023 ![]() ![]() “And it might alarm you.As autumn arrives, we celebrate the harvest with festivals and give thanks for the bounty of produce. “If you're a legislator right now, you're looking at stablecoins and seeing something that's massively successful,” said Leshner. These assets have grown in size by 353% and 1,400%, respectively, in just two years. Growth of USDT (blue) and USDC (yellow) from Octoto October 12, 2022. ![]() In October 2020, USDT was at just $15 billion and USDC just shy of $3 billion. Circle’s USDC is the fourth-largest, with a market cap of $45 billion. Tether’s USDT currently commands a market capitalization of $68 billion, making it the third-largest cryptocurrency after Bitcoin and Ethereum. More recently, researchers at the Bank of New York argued that the size of stablecoins, including those with traditional assets backing them, demand regulators pay closer attention.Įven amid these concerns, both stablecoins have grown bigger. In February of this year, Democrat Congresswoman Maxine Waters brought these risks to the fore during a House Committee on Financial Services that risks around the backing of stablecoins “could harm both ordinary users of these products as well as our financial system overall,” before calling for Congress to take action. This lack of clarity has improved some over the years, with Tether now delivering monthly asset attestations but the stablecoin issuer has never worked with a “Big Four” accounting firm to date.Ĭircle has battled similar issues and now issues a regular attestation. Tether, for example, has faced years of negative attention due to how opaque the firm has been about its reported 1:1 backing with the U.S. Regulatory scrutiny has primarily revolved around transparency as well as determining how these assets could affect traditional financial markets. Regulators appear to have reached the same conclusion, and have zeroed in on stablecoins as the route through which to regulate the entire industry. They're faster, they're cheaper, they're better, and left to their own devices, they will win and conquer everything.” ![]() Stablecoins, he said, are “fundamentally better than the old payment rails of wiring money, or ACH money, or writing a paper check, or using a credit card,” he said. That shift has come as no surprise to Leshner. These days, Compound’s largest borrowing market is for Circle’s USDC stablecoin. “In some ways, what everyone expected Bitcoin to do… stablecoins have done.”Ĭompound, launched in 2018, is one crypto’s first decentralized borrowing and lending platforms, letting users earn yield on their idle tokens or take out crypto-backed loans. “Whether you're a retail user, a hedge fund, an exchange, a business that wants to do payments, stablecoins have crazy traction everywhere,” Compound founder Robert Leshner told Decrypt at Chainlink SmartCon in New York. Stablecoins have emerged as the life-blood of the crypto industry.Īt a hefty $150 billion in total market capitalization, even after the collapse of Terra’s algorithmic stablecoin UST earlier this year, they may be one of crypto’s best current use cases.Īt least according to one of the earliest DeFi founders. ![]()
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