Facebook-backed digital currency project Diem could launch its first stablecoin in 2021 as a small-scale pilot, according to an anonymous source. Cited in a CNBC report published on Tuesday, the source claimed that the Switzerland-based nonprofit The Diem Association is still intending to launch its pilot for a United States dollar-backed stablecoin later this year. Back in November 2020, the association had already announced its plans for a limited launch of a U.S.-dollar stablecoin in January, yet as the months have since passed, the currency is yet to see the light of day. Diem’s stablecoin is a significantly scaled-back and …

Tether (USDT) has now launched on Hermez Network, an Ethereum scalability solution based on the zk-rollup concept. Rollups provide a way of batching or “rolling up” transactions to lighten the load on the Ethereum network. The key to rollups is the concept of data availability, which means that the state data of the rollup is always fully available on-chain. In practice, this means that the Ethereum network knows the token balances of all user accounts on the Hermez rollup after every transaction, and this knowledge can be used to rapidly withdraw funds and distribute them to their new owners in …

Over the last couple of years, we have seen a lot of interest from central banks and governments in the stablecoin market. The reason behind it lies in the development of central bank digital currencies, or CBDCs. The idea of issuing a digital alternative to cash is a great motivator for central banks. It allows them to gain more control over the transition and processing of cashless transactions, which are currently overseen indirectly through private payment processors and banks. Related: Did CBDCs affect the crypto space in 2020, and what’s next in 2021? Experts answer There have been a number …

Stablecoins have become a significant foundational piece for the cryptocurrency sector because they serve as a deeply liquid base pair for most assets and also offer investors a secure place to capture gains. Data also shows that stablecoins play a significant role in functioning as a gateway for capital inflow to the crypto ecosystem. While the largest stablecoins in the market are currently controlled and issued by centralized entities like Tether or Circle, DAI and its issuer Maker (MKR) is one stablecoin project that keeps with the ethos of decentralization that the cryptocurrency community is founded on. Data from Cointelegraph …

A decentralized platform allows investors to gain access to well-balanced baskets of digital assets that serve as an effective store of value. Digital Reserve offers several portfolios — the construction of which are based on votes from community members. The project says no single entity or person is in control, as users interact directly with smart contracts. The first portfolio is geared toward capital appreciation. While 40% is allocated to Wrapped Bitcoin, 40% is also dedicated to PAX Gold, an asset-backed token that is pegged to a troy ounce of the precious metal. The remaining 20% is allocated to Wrapped …

Research from on-chain analytics provider Glassnode has revealed that the top three stablecoins represent more than 90% of the sector’s entire market cap. Glassnode’s Tuesday “The Week On-chain” report found that the top three stablecoins — Tether (USDT), USD Coin (USDC) and Binance USD (BUSD) — have seen significant growth over the past six months to represent a combined capitalization of more than $60 billion, equal to 92.75% of the stablecoin market. By contrast, six months ago, the combined stablecoin capitalization for those three was less than one-third of its current levels at $19.2 billion. This time last year, stablecoins …

Cryptocurrency exchange Binance is launching tradable stock tokens that aim to enable a wider section of the public to pocket capital returns on equities, including potential dividends, without having to purchase full, traditional shares. The first publicly tradable equity in the form of a Binance stock token will be Tesla, the share price of which currently hovers around the $700 mark. Rather than purchase a full, traditional share, for which custody of a physical share certificate is required, users can purchase as little as one one-hundredth of a Tesla share represented by a digital token. Binance stated: “Each digital token …

2021 has been an impressive year for Binance Coin (BNB), which so far has rallied by more than 900%. One of the primary drivers of BNB's growth was continued congestion on the Ethereum network. As this struggle carried on, Binance Smart Chain (BSC) emerged as an alternative, meeting the rapidly growing decentralized finance (DeFi) sector's demands. As BNB reached a $64 billion market capitalization, it has surpassed traditional banks, including Santander, the Bank of Montreal, and UBS. Meanwhile, some analysts point to the estimated value and impact of Coinbase's upcoming direct listing ($100-billion valuation) as a catalyst for the BNB …

Wednesday’s crypto market correction put a heavy burden on Fei Protocol's FEI token, the latest attempt at creating an algorithmic stablecoin that would remain stable in the face of market turbulence. Due to the particular mechanics of the protocol, the FEI token became impossible to sell as its main liquidity pool quoted a negative price for the token. Fei Protocol is a recently launched project that has immediately attracted billions in liquidity and total value locked by selling its FEI token, an algorithmic stablecoin using the concept of Protocol Controlled Value to maintain a peg with the U.S. dollar. Crucial …

Indian multinational technology firm Tech Mahindra is developing a new stablecoin service targeting banks and financial institutions. The tech giant announced Monday that it has entered into an agreement with Dutch blockchain application incubator Quantoz to launch a “stablecoin-as-a-service” tool to reduce transaction costs and processing times. The new collaboration targets potential clients from the banking and financial sector as the United States’ Office of the Comptroller of the Currency officially allowed federally chartered U.S. banks to use public blockchains and stablecoins for settlements in January 2021. Rajesh Dhuddu, blockchain and cybersecurity leader at Tech Mahindra, said: “The recent OCC …

Polkadot and Kusama users will benefit from a direct integration with Tether’s USDT when common good parachains launch. As announced by Tether on Tuesday, the stablecoin will launch both on Polkadot and Kusama, its cousin network. Tether (USDT) is the oldest stablecoin to reach significant adoption, and it has recently surpassed $40 billion in circulating supply. Though there have been concerns in the past for its reserve status, the company recently committed and followed through with periodic reserve audits. The timing of Tether’s release on Polkadot depends on its roadmap and the activation of parachains, the “shards” within the Polkadot …

The launch of Ethereum-backed stablecoin called Fei has locked up almost a billion dollars’ worth of ETH during its genesis event. But the launch hasn't gone entirely as planned for some of its liquidity providers. The protocol, which launched a genesis event on April 1, introduced a stablecoin that is partially backed by Ethereum and uses bonding curves coupled with direct incentives to maintain the correct peg. These direct incentives penalize price fluctuations moving away from the peg and reward trades that drive prices towards the peg. Messari researcher Ryan Watkins observed the genesis event, which included an airdrop to …