Exploring Fractional Collateral Backing for Stablecoins
What defines collateral and value? Recent insights from Caitlin Long, a Wall Street veteran and the Founder and CEO of Avanti Financial Group, took a look at the investment reserve disclosure from Tether Operations Limited, the company behind the USD-pegged stablecoin, USDT. It showed that of the assets used to back and stabilize USDT, only […]
Related News
As long as stablecoin “liquidity is growing proportionally with each other," there won’t ever be true competition between stablecoins, says Frax Finance's Sam Kazemian. Stablecoin projects need to take a more collaborative approach to grow each other’s liquidity and the ecosystem as a whole, says Sam Kazemian, the founder of Frax Finance.Speaking to Cointelegraph, Kazemian explained that as long as stablecoin “liquidity is growing proportionally with each other” through shared liquidity pools and collateral schemes, there won’t ever be true competition between stablecoins. Kazemian’s FRAX....
Bitcoin as an asset is a perfect form of collateral and will likely be used to provide financial backing for mortgages and other forms of debt.
Paxos, a regulated blockchain company, recently presented the basket of resources that back its stablecoins. Paxos Standard (PAX) and Binance USD (BUSD) are reportedly backed almost 100% by cash and cash equivalents. Dan Burstein, CCO of Paxos, harshly criticized Tether and Circle, issuers of other stablecoins, stating their products we’re not really stablecoins. Paxos Reveals Stablecoin Backing Basket Paxos, a blockchain-regulated company, revealed the basket of assets backing their issued stablecoin on Wednesday. The company, which issues Paxos Standard and Binance USD, two....
According to reports, the e-commerce giant Amazon has recently invested in a fractional sports trading card marketplace called Dibbs. The platform, built on top of the Wax blockchain, allows users to purchase and sell fractions of collectible trading cards. Reports further add that the financial terms of Amazon’s backing of Dibbs have not been disclosed. Reports Disclose Amazon Has Entered the Digital Collectibles Space Non-fungible token (NFT) assets and digital collectibles have been gathering a lot of steam in 2021 and it seems that everyone wants a piece of the billion-dollar....
Bear markets are much more brutal for crypto lenders than cryptocurrency firms that don’t leverage users’ deposits, according to one Bitcoin analyst. The ongoing bear market on cryptocurrency markets is too harmful to industry lenders, but the concept of crypto lending can still survive the bloodbath, according to some industry experts.Cryptocurrency lending is a type of crypto service that allows borrowers to use their crypto assets as collateral to get loans in fiat currencies like the United States dollar or stablecoins like Tether (USDT). The practice allows users to get money without....