Stablecoins

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.

Traders Can Now Bet on Whether Libra Will Launch in 2020

  • Crypto exchange CoinFlex will soon launch its Libra initial futures opening (IFO), which will let traders bet on whether the project will launch before December 30, 2020.
  • The initial price of the contract will be set at $0.30, which represents a 30% chance for the project to launch before its settlement date.

Coinbase Users Can Now Earn Interest on Their USDC Holdings

  • The exchange's new rewards program allows its users to earn a 1.25% annual percentage yield (APY) for every USDC in their accounts.
  • The rewards will be distributed on a monthly basis, and can be used to buy other cryptocurrencies listed on the exchange.

Revenue-Sharing Stablecoin Launched by Former Employees of J.P. Morgan, Intel and TrustToken

  • Released by the Global Currency Organization, this new project aims to bridge the gap "between traditional and decentralized finance".
  • The new USD Digital (USDD) token uses the Ethereum blockchain and incentivizes adoption through its novel fifty-fifty revenue sharing model.

ECB Exec: Libra Could Solve Some Issues of the Global Payment Systems

  • Benoit Coeure said that Libra could be a solution to the current cross-border retail payments by making them cheaper, faster and more transparent.
  • It can also promote financial inclusion by helping the 1.1 billion unbanked individuals around the world.