FDUSD has quickly become the fourth-largest stablecoin since its launch last year under Hong Kong’s digital asset regulations, benefitting from crypto exchange giant Binance’s trading promotion.
The window is narrowing for legislation to set up rules for stablecoin issuers in 2024, but the retiring chairman of the House Financial Services Committee says it can be done.
Solana is leading the field in blockchain payments, but the network has scalability issues, the report said.
Rapidly expanding stablecoin supply shows that “fiat money is being moved into crypto at an accelerated pace,” 10x Research’s Markus Thielen said.
The token will be “100% backed by U.S. dollar deposits, short-term U.S. government Treasuries and other cash equivalents.” according to the company.
The House Financial Services Committee chairman, in his final year in Congress, is still optimistic about passing a U.S. stablecoin bill, and Sen. Cynthia Lummis said the Senate’s majority leader is open to it.
The Galaxy Ventures-backed project expects its “Rehype” liquidity pools could generate mid-double digit returns, developers said.
The action may foreshadow regulatory restrictions in the region for the largest stablecoin by market capitalization and trading volume, as upcoming E.U. rules will require stablecoin issuer to be licensed electronic money institutions.
The regulator invited applicants with a “genuine interest in developing a stablecoin issuance business” to join the sandbox.
Profits are redistributed to the community by rewarding token holders with yields.