PayPal Launches Ethereum-Based Stablecoin PYUSD, Sparking Debate and Expectations
PayPal's launch of the Ethereum-based stablecoin PYUSD has generated mixed reactions within the crypto community. While it presents an opportunity for Ethereum to gain mainstream adoption, concerns have been raised about potential threats to decentralization and personal asset control. The stablecoin, issued by Paxos Trust Co., aims to facilitate digital payments and Web3 applications. Some view this development as a positive step towards Ethereum becoming the monetary layer of the internet.
PayPal Launches PYUSD Stablecoin on Ethereum, Raises Concerns About Centralization and Control
Paypal has introduced a new stablecoin named PYUSD, which is based on Ethereum. The crypto community has mixed reactions to this announcement, with some viewing it as a positive step towards Ethereum's mainstream adoption, while others are concerned about its potential impact on decentralization and personal control of assets. PYUSD is designed for digital payments and Web3, and will soon be available to US customers. However, some smart contract auditors have raised concerns about the centralization attack vector in the smart contract, and others have compared it to a censorship-enabled central bank digital currency.
PayPal's PYUSD Stablecoin Launch Marks "Watershed Moment" for Regulated Stablecoins, Says Partner Paxos
PayPal's launch of its own stablecoin, PYUSD, is a significant moment for bringing regulation to the stablecoin space. Unlike other stablecoins, PYUSD is overseen by a prudential regulator and customers' assets are protected against bankruptcy. Paxos, PayPal's partner on the project, highlights the difference in regulation and protection that comes with being a trust company regulated by the New York Department of Financial Services. While Tether and Circle remain dominant players in the stablecoin market, PYUSD could become a worthy competitor to USDC.
PayPal Launches New Crypto Stablecoin Backed by US Dollars
PayPal has introduced a new stablecoin called PayPal USD (PYUSD), which will be backed by US dollar deposits and other cash equivalents. The stablecoin will be issued by Paxos Trust Co. and will soon be available to US customers. The company had previously announced its plans to launch a stablecoin in January 2022 and is working closely with regulators to ensure compliance.
MakerDAO Increases Yield on DAI Stablecoin to 8%, Restricts VPN Access on Lending Platform Spark
MakerDAO has increased the yield on its stablecoin, DAI, from 3% to 8%, making it one of the highest rates offered by a major stablecoin issuer. A single crypto participant transferred 14.32 million DAI into MakerDAO's lending platform, Spark, likely to take advantage of the increased yield. Spark has recently restricted users from accessing its front end via virtual private networks (VPNs) to geo-block users from specific geographies, including the United States. This move is unusual in the DeFi sector and appears to specifically target U.S.-based users.
Tether Becomes 11th Largest Bitcoin Holder in the World
According to insider sources, Tether, the stablecoin issuer, has emerged as the 11th largest holder of Bitcoin globally, with a current holding value of approximately $1.6 billion. While Tether has not officially disclosed its Bitcoin address, research analyst Tom Wain of 21. co claims to have identified a potential Tether address holding around 55,022 Bitcoins, equivalent to $1.6 billion. A direct source familiar with the matter confirmed Tether's position as the 11th largest Bitcoin holder, a ranking also maintained on 21. co's Dune Analytics. Tether declined to comment.
Curve Finance's crvUSD Stablecoin Experiences Temporary Depegging After Recent Exploit
Curve Finance's crvUSD, a decentralized stablecoin, briefly depegged from its value to the US dollar, dropping by 0.35% following the recent exploit on July 30. This has raised concerns about the stability mechanisms of the stablecoin, which mostly maintained its peg since its introduction in May. The situation was compared to the brief depegging of USD Coin during the Silicon Valley Bank collapse in March. Curve Finance founder Michael Egorov has been working to decrease his loan position due to the risk of a major liquidation, which could result in a Black Swan event.
Glo Launches Philanthropic Stablecoin to Alleviate Extreme Poverty
Nonprofit organization Glo has introduced a new stablecoin named Glo Dollar that is backed by fiat currencies and low-risk securities to maintain a 1:1 peg against the US dollar. However, what makes Glo Dollar unique is that it generates yield from the interest earned on its backing assets, which is then used for charitable work aimed at reducing extreme poverty.
Data: FDUSD Issued More Than 83 Million Pieces Today, and the Total Circulation Has Exceeded 100 Million Pieces
Information on the chain shows that more than 83 million stablecoin FDUSD were issued today, of which 68.29 million were issued on Ethereum and 14.98 million were issued on BNB Chain. As of press time, the circulation of FDUSD on Ethereum is 79.42 million, and the circulation on BNB Chain is 25.07 million.
Tether Reports $850M Q2 Profit, Excess Reserves Reach $3.3B
Tether, the stablecoin issuer, has reported a net profit of $850 million in Q2, which is lower than the $1.5 billion reported in the previous quarter. The company's excess reserves now stand at around $3.3 billion, which includes the profits that Tether has decided to keep on top of the 100% reserves that it maintains to back all outstanding tokens. Tether's consolidated total assets were around $86.5 billion as of June 30, while its consolidated total liabilities were $83 billion, resulting in excess reserves of over $3 billion, a new all-time high. The company's USDT is the largest stablecoin in the market, with a supply of over 84 billion tokens.
