Stablecoins

Tether To Use Chainalysis’ AML Compliance Tools

  • With the help of Chainalysis' Know-Your-Transaction tool, Tether will be able to track potential criminal activities.
  • While Tether can not confiscate the tokens used in a "high risk" transaction, it can still freeze the wallets that contain them.

Tether Deploys on Algorand

  • Tether announced back in July, 2019, that they will deploy on Algorand.
  • Algorand has become only the fifth blockchain where USDT is available for trading.

WisdomTree Considers Launching a Stablecoin in the U.S.

  • The asset manager, who oversees around $63 billion in assets, will first try to obtain the approval of the SEC.
  • The regulatory agency might be a bit more welcoming towards WisdomTree, given that it is an established U.S. financial firm.

Leading Crypto, Precious Metal Companies Create Gold-Backed Stablecoin

  • The new digital asset is titled DGLD and is currently tradeable only on Blockchain.com's The PIT exchange.
  • Initially, each DGLD token will be worth 1/10 of a troy ounce of physical gold.

Paxos Expands its Gold-Backed Token’s Ecosystem

  • The new partnership with Alpha Bullion allows PAXG token holders to redeem in small sizes of gold.
  • The gold-backed token is now available for trade against the USD, EUR, BTC and ETH on the Kraken exchange.

Draft Bill Claims Stablecoins Are Securities

  • The "Stablecoins are Securities Act of 2019" aims to put all stablecoins under the regulatory supervision of the SEC.
  • Facebook's Libra seems to be at the core of this new bill as fears of its imminent launch in 2020 grip policymakers.

Fractional-Reserve Stablecoin to be Released by Former Fed Nominee

  • Stephen Moore plans to release a stablecoin, Frax (FRX), with its value fixed to the dollar, but not backed 1:1 by it.
  • The "algorithmic, fractional-reserve stablecoin" will use on-chain lending to create interest cash flow, which will maintain the price of FRX.

Facebook Could Issue Several Stablecoins Instead of Just One

  • David Marcus reportedly said that Facebook is considering dropping its plan of a single stablecoin, for a number of fiat-pegged stablecoins.
  • This move could be the result of a recent report from the Financial Stability Board, which said that "global stablecoins" as a threat to financial stability.

G7: Financial Stability at Risk from Global Stablecoins

  • Even though G20 leaders previously admitted that crypto assets are not a risk to global financial stability, the new report says stablecoins come with their own challenges and risks.
  • The report also says that even if stablecoin projects can address all the legal, regulatory and oversight challenges and risks, they might still not get approved.

OpenLibra – a Permissionless Fork of Facebook’s Libra

  • The project plans to become "an alternative to Facebook's Libra", focusing on open governance and economic decentralization.
  • Reportedly, anything that can run on Facebook's Libra can be dragged and dropped into the new permissionless fork.