Let's check-in on the Stable Coin's
Recap - What are Stablecoins?
They are mostly USD-pegged ($) coins which remain the most popular tokenized asset (AKA RWA or Real World Asset). They have a requirement to be pegged to an asset like U.S. Dollar or gold.
Stablecoin Market Cap - Current as of 01/17/2024
Snippet Credit - Coingecko.com
It should come as no surprise that the USA is the world's largest Crypto market
US comes in at 24.4% of all Crypto transactions, however, when it comes to Stable Coins USA is no longer king of the hill. Partly attributed to SEC's ongoing War on Crypto (which is another topic for another day), stablecoin usage has slipped in the USA as Southeast Asia picks up the slack!
- USDC (Circle) filed for US IPO on Jan. 11 '24. Why is this important? USCD ranks as the second-largest stablecoin, they laid off staff in '23 in a run up to 2024 IPO (common tactic to slash spending to the bare minimum). Also keep in mind the SEC recently denied RIPPLE IPO effort.
- Chainlink teamed up w/ Circle to allow Cross-Stable coin transfers - This is huge in my mind as the Crypto community needs the ability to move seamlessly in/out of assets; keep your money moving.
- Tether (USD) - after being bashed by the UN being used by terror organizations.
- Tether counters and criticizes UN for ignoring its role in developing nations (Common good)
- TrueUSD ($TUSD) falls below $1 parity as selling ramps up on Binance and Poloniex - Recall this is Justin Sun's new venture and this recent de-pegging event might garner unwanted regulatory scrutiny.
Developing and you might want to be aware of:
- Singapore’s Central Bank Unveils Stablecoin Regulation as Global Trailblazer. I expect to see more of the Global Crypto focus shift to Singapore as Wealth flows to where it is treated best.
- UK to allow overseas stable coins - well kind of, under new regulatory authorizations by the Bank of England (Recall they are the Grand Father of the worlds Central Banks) the framework goes to work targeting Stablecoins that leverage Fiat Currency for payments. Know this will not be a fast boat style attack on Stablecoins but slow, methodical grinding
Summary
Do not count Stablecoins down and out just yet! They are nimble enough to continue to advance technology and interoperability's while continuing their positive impact to global finance and trade.
