Crypto News – Digital Assets Forge New Paths to US Dollar Exposure
Crypto News- In response to increasing demand for United States dollar-denominated digital assets, crypto firms are swiftly innovating. Tether, renowned for its stablecoin USDT, has unveiled a groundbreaking move by introducing a synthetic dollar backed by gold, firmly pegged to the USD. This development closely follows Assymetry’s launch of afUSD, a synthetic dollar featuring an elastic supply mechanism dictated by market dynamics.
Ethena’s Impact and Market Response
Ethena’s introduction of USDe, a synthetic dollar, has catalyzed a surge in similar token offerings. Since its February 2024 debut, Ethena has secured over $3.4 billion in locked assets within four months, as reported by DefiLlama. This unprecedented success underscores a robust global appetite for dollar-denominated cryptocurrencies.
Tokenized U.S. Treasurys and Traditional Finance Onchain
Simultaneously, traditional finance is embracing blockchain technology with the tokenization of U.S. Treasurys witnessing significant growth. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) boast substantial assets, totaling $820.3 million. Notably, $1.5 billion in U.S. Treasurys have been tokenized, with the majority occurring in recent months.
Hashdex’s ETF Filing, Coinbase’s Pre-Launch Market, and Ripple’s Regulatory Challenges
Hashdex Seeks SEC Approval for Combined Bitcoin and Ether ETF
Hashdex has initiated proceedings with the U.S. Securities and Exchange Commission (SEC) for a novel ETF offering. This ETF, slated for the Nasdaq exchange, will track the Nasdaq Crypto US Settlement Price Index, comprising approximately 70.54% Bitcoin and 29.46% Ether. Custodial duties for BTC and ETH assets will be undertaken by Coinbase and BitGo, pending SEC approval.
Coinbase Introduces Pre-Launch Market
Coinbase International’s latest feature, a pre-launch market, enables users to trade futures of upcoming tokens before their official listing on the exchange. With institutional investors accessing this feature via Coinbase International and retail traders via Coinbase Advanced, Coinbase aims to align with practices established by major centralized exchanges.
SEC Pushes Back on Ripple’s Penalty Request
Amid Ripple’s ongoing legal battle with the SEC, the regulatory body has rebuffed Ripple’s plea for a reduced penalty. The SEC contends that Ripple’s proposed penalty of $10 million is grossly inadequate, advocating for a figure closer to $102.6 million, considering Ripple’s gross profits. This dispute underscores the SEC’s pursuit of nearly $2 billion from Ripple, encompassing prejudgment interest, civil penalties, and disgorgement.
Uphold’s Regulatory Response: Delisting Stablecoins
In anticipation of the Markets in Crypto-Assets (MiCA) regulation by the European Union, Uphold has announced the delisting of six stablecoins by July 1. Uphold cites compliance with MiCA as the rationale behind this decision, aligning with broader industry trends. Users holding USDT, Dai, Frax, Gemini dollar, Pax dollar, and TrueUSD must convert these stablecoins before June 28 to avoid automatic conversion into USDC.
FAQs: USD-Denominated Digital Assets and Regulatory Developments
What are USD-denominated digital assets?
USD-denominated digital assets are cryptocurrencies or tokens whose value is directly tied to the United States dollar. They are designed to maintain a stable value relative to the USD, offering stability and utility in the crypto space.
Why are USD-denominated digital assets gaining popularity?
These assets are gaining popularity due to their stability and ability to provide exposure to traditional fiat currencies within the decentralized cryptocurrency ecosystem. They offer a bridge between the traditional financial world and the digital asset space.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment