Cryptocurrencies To Watch

Tag: Stablecoins

  • Ethena Labs Debuts New USDtb Stablecoin, ENA Gains 20% In a Week

    Ethena Labs Debuts New USDtb Stablecoin, ENA Gains 20% In a Week

    The decentralized finance (DeFi) protocol operators, Ethena Labs, have publicly announced the launch of USDtb, a new stablecoin whose reserves are invested in BlackRock’s USD Institutional Digital Liquidity (BUIDL) fund. The launch was executed in partnership with Securitize, a firm specializing in tokenizing real-world assets.

    Ethena Labs Launches USDtb

    USDtb shares similar features with existing stablecoins like USDC or USDT, utilizing cash reserves to back each token 1:1. Boasting about the token’s reliability and stability as a store of value, Ethena Labs claims users can transfer USDtb freely without restriction.

    The protocol operators further claimed that one of USDtb’s key features is its ability to scale without practical constraints, alluding to BlackRock’s BUIDL being used as the primary reserve asset. Commenting on this, Ethena Labs asserted that 90% of the reserve is in the fund. It believes the allocation is the highest of stablecoins and provides a robust foundation for the token.

    It is noteworthy that USDtb is wholly independent of Ethena’s existing stablecoin, USDe. Ethena Labs expressed that users and exchange partners have a new option for their stablecoin needs, with a completely differentiated risk profile compared to USDe. Additionally, it claims USDtb can help USDe weather better in challenging market conditions.

    Ethena Labs Assures Users

    To assure users of the token’s security, the Ethena team claims the launch of USDtb has undergone testing and auditing. The core USDtb smart contracts passed three audits from auditors Pashov, Quantstamp, and Cyfrin in October with no high or medium-level findings. Additionally, a community-driven audit from Code4rena found no high or medium-level threats.

    Ethena’s Risk Committee has approved a proposal to onboard USDtb as a USDe backing asset. During negative funding rates, Ethena can close the hedging positions underlying USDe and re-allocate its backing assets to USDtb. The team believes this will further mitigate related risks and provide a more stable store of value.

    Meanwhile, ENA, the native token of the Ethena protocol, has seen a significant 20% gain in just one week, making it a $3.52 billion asset class. The ENA price breakout above $1.20 suggests a further rally may be on the horizon. The current momentum indicates growing investor interest in the platform and its tokens.

  • Ripple Secures Final Approval From NYDFS For Its Stablecoin Launch

    Ripple Secures Final Approval From NYDFS For Its Stablecoin Launch

    Ripple, a leading blockchain-based payment solution, has achieved a significant milestone with the final approval from the New York Department of Financial Services (NYDFS) to launch its much-anticipated stablecoin RLUSD.

    RLUSD is a stablecoin that aims to preserve a 1:1 value with the US Dollar, like widely used stablecoins such as USDT and USDC.

    NYDFS Approves Ripple’s RLUSD

    The NYDFS, known for its thorough regulatory framework, has granted Ripple the green light to issue its USD-backed stablecoin. The approval process involved rigorous assessments of Ripple’s compliance with anti-money laundering (AML) measures, consumer protection policies, and financial obligations.

    Ripple’s CEO, Brad Garlinghouse, also expressed his enthusiasm on X about the approval by noting that when RUSD is live, the world will hear it first from Ripple.

    Garlinghouse initially signaled Ripple’s plans to enter the stablecoin arena, dominated mainly by Tether and Circle mid-2024, suggesting that evolving political landscapes could pave the way for new players like Ripple.

    By August, testing for RLUSD was in progress on Ethereum and the XRP Ledger. Later in October, Ripple announced that RLUSD would soon be accessible on platforms such as Uphold, Bitstamp, and Bullish.

    The firm further noted that RLUSD combines the stability of conventional fiat currencies with the speed and efficiency of blockchain technology, making it well-suited for various financial applications.

    Development of RLUSD slowed briefly as Ripple worked with regulators to ensure its stablecoin met compliance standards. On December 6, Ripple’s CTO, David Schwartz, noted that RLUSD was expected to go live before the end of the year, just 21 days from the time of reporting.

    XRP Sees Uptick in Price

    Following the announcement, XRP, Ripple’s native token, saw a notable uptick in its price, signaling positive investor sentiment. Market analysts believe the stablecoin launch could further solidify Ripple’s position as a dominant player in the blockchain and fintech sectors.

    The crypto asset was down 11% in the past week. However, XRP has increased 5.91% in the last 24 hours, ranking as the fourth largest cryptocurrency after Tether USDT.

  • USDX MONEY Announces $45M Funding Round to Boost Its Stablecoin

    USDX MONEY Announces $45M Funding Round to Boost Its Stablecoin

    In a recent tweet, USDX MONEY, a decentralized synthetic USD stablecoin issuer, announced that it secured $45 million in funding from significant backers to boost its stablecoin. The $45 million fund brought the company’s value to $275 million.

    Investors who provided the funding included venture capital firms NGC, BAI Capital, Generative Ventures, and UOB Venture Management, among others.

    Some of these investors also gave USDX MONEY special tickets, called warrants, that allow them to buy more company shares in the future. Existing investors in the stablecoin issuer, Dragonfly Capital and Jeneration Capital, also participated in this funding round.

    According to the tweet, the new funding will help USDX MONEY accelerate its goal of building a new and improved system for digital currency, called stablecoin infrastructure. This system will help connect different types of financial systems, including decentralized finance (DeFi), centralized finance (CeFi), and traditional finance (TradFi), making it easier for people to use digital currency.

    Stablecoin Adoption Continues

    Despite regulatory uncertainty, stablecoins have gained significant traction. The market cap of stablecoins has grown substantially, with Tether and Circle’s USDC being the most prominent players.

    In June, Tether, the platform behind USDT, the world’s largest stablecoin, partnered with a blockchain-focused financial institution, XREX, investing $18 million to drive stablecoin adoption and crypto innovation.

    Circle, the issuer of another popular USD Coin (USDC) stablecoin, revealed its plans to launch on the layer-1 blockchain Sui network. According to the platform’s CEO, Jeremy Allaire, its partnership with the Sui network will expand USDC’s availability to over 15 blockchain platforms and networks.

    Such partnerships and funding help to foster the growth of the stablecoin market. A notable example is the statistics of Bitcoin-backed overcollateralized stablecoin, USDa.

    Two weeks after its launch, USDa surpassed a staggering $400 million supply, demonstrating an impressive adoption rate. Furthermore, the stablecoin reached a notable milestone, exceeding $700 million in total value locked (TVL) within two weeks following its launch.

    Stablecoin Market Maturity in Asia Gains Momentum

    Asia’s influence in the stablecoin market continues to grow, with Japan’s top banks launching a joint stablecoin platform for international settlements to streamline cross-border transactions.

    The banks included Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC), and Mizuho Financial Group.

    The Hong Kong Securities and Futures Commission (SFC) recently announced its intention to create a regulatory framework to regulate stablecoins.

  • First Bitcoin-Backed USDa Stablecoin Surpasses $400M in Just Two Weeks

    First Bitcoin-Backed USDa Stablecoin Surpasses $400M in Just Two Weeks

    In a testament to the growing demand for innovative financial solutions, USDa, a Bitcoin-backed overcollateralized stablecoin, has shattered expectations, surpassing a staggering $400 million in supply in a mere two weeks after its launch.

    In addition to its impressive adoption rate, the stablecoin also reached a notable milestone, surpassing $700 million in total value locked (TVL) within the same two-week period following its launch.

    Avalon Labs Unveils Pioneer Bitcoin-Backed Stablecoin

    Earlier this month, Avalon Labs, a Bitcoin-based finance firm, introduced USDa, which it calls “The Bitcoin Money.”

    Apart from its pioneering work in blockchain and financial technology, the firm leverages its credibility as a winner of the second round of the prestigious BNB Incubation Alliance competition.

    To further enhance the offerings on the USDa project, Avalon Labs introduced an incentive program. This program features a $50 million deposit cap that enables participants to earn impressive annual percentage yields (APY) ranging from 20% to 50%, coupled with a generous 3x points rewards system.

    What is Avalon Labs’ USDa?

    Avalon Labs’s USDa project allows Bitcoin holders to access liquidity with a fixed 8% borrowing rate without selling their BTC. Built on LayerZero technology for cross-chain compatibility, the project integrates with DeFi and CeFi ecosystems, bridging the gap between institutional liquidity and decentralized innovation.

    Users seeking to acquire USDa stablecoins can do so through two primary channels. They can either purchase USDa on accepted decentralized exchanges (DEXs) or directly through the Avalon Finance website.

    Avalon Labs also offers two distinct methods for minting USDa tokens. Users can deposit collateral, such as Fractional Bitcoin or Wrapped Bitcoin (FBTC), into the Avalon CeDeFi platform to mint USDa.

    Alternatively, they can deposit USDT at a 1:1 ratio to receive USDa tokens. However, at the time of launch, the USDT deposit option was not available to users.

    USDa’s impressive supply of $400 million catapulted it to the third spot among CDP stablecoins, trailing only MakerDAO and JustStables. In a recent article, MakerDAO underwent a significant transformation. The DeFi platform rebranded as Sky and introduced its revamped stablecoin and governance token, $SKY.

  • Suilend Adds Support for Circle’s Native Coin USDC

    Suilend Adds Support for Circle’s Native Coin USDC

    DeFi lending and borrowing platform Suilend recently announced that it now adds support for the native USDC, the flagship stablecoin issued by Circle. News of this integration comes three weeks after Circle revealed plans to launch its dollar-pegged stablecoin on the layer-1 Sui blockchain.

    Native USDC Joins Suilend

    Previously, users on the Suilend protocol could access USDC by leveraging the Wormhole-wrapped USDC. The bridged version of the stablecoin accounted for 65% of the market share of stablecoins (over $280 million) traded on the Sui network.

    However, the recent integration with the native USDC allows users to migrate to direct interaction with Circle’s dollar-pegged stablecoin. It will also enhance users’ and developers’ interoperability by adding liquidity, improving market efficiency across the ecosystem, and streamlining transactions.

    Suilend has urged users to interact directly with the native USDC stablecoin without the Wormhole-Wrapped bridge. Those with balances in bridged USDC are also advised to migrate to the native version of the digital asset. The DeFi lender added an incentive for users, offering zero fees for borrowing actions for a limited time.

    Suilend’s dashboard shows that over 17.8 million USDC have been deposited into the protocol and 12.3 million USDC borrowed within a few days of its debut.

    Circle Expands Ecosystem

    Suilend’s addition of support for USDC stablecoin will grow the digital asset’s market performance. For instance, on-chain data reveals that the stablecoin’s daily trading volume soared to $7.3 billion shortly after the announcement.

    Over the past few months, Circle has made several moves to boost the adoption of its USDC stablecoin. One such move is that the stablecoin is now available on more than 15 blockchains, including Avalanche, Polygon, Base, and more.

    In other news, Circle joined forces with Sony to bring USDC into Soneium, an Ethereum layer-2 network aimed at boosting Web3 adoption.