Ethena’s USDe “synthetic dollar” is independent from the traditional financial system and aims to offer a dollar-denominated, yield-bearing savings vehicle for investors outside of the U.S.
USDT’s appeal relative to other stablecoins will likely diminish as regulations will require more transparency and compliance with new anti-money laundering standards, the report said.
Industry groups argue they see inconsistencies in regulatory plans by the Bank of England and the Financial Conduct Authority.
A kind of ‘money middleware for the digital age,’ the M^0 smart contract ruleset aims for institutional grade stablecoins that are decentralized and interoperable.
Other stablecoins such as USD Coin may benefit from the coming regulatory crackdown and gain market share, the report said.
Celo, which is in the midst of transforming into an Ethereum layer 2 network, increasingly positions itself as a blockchain for real-world assets.
Venture Smart Financial Holdings is also aiming for a spot-bitcoin ETF and is involved in the discussions about the stablecoin sandbox.
Kazemian expects Fraxtal to debut with a bang, attracting at least several hundred million dollars worth of crypto assets in the first month.
Tether’s $95 billion USDT has been dogged by questions around whether it actually holds the assets it says are backing the stablecoin. Cantor Fitzgerald’s Howard Lutnick, whose firm manages Tether assets, says it does.
The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are also planning a sandbox to provide guidance on compliance.