Crypto News – A private alternative to a central bank digital currency (CBDC) could be created in the United States if Wall Street firms continue to participate in the stablecoin market, which would accelerate the development of American rules.
Stablecoins in the US: BlackRock Could Open the Door to US-Regulated Stablecoins if Regulatory Developments Accelerate
The recent opening of off-ramps in USD Coin for BlackRock’s tokenized fund, according to analyst Ryan Sean Adams, is merely another phase in the continuous merger of stablecoin providers and traditional banking.
Stablecoins will happen in the U.S. because BlackRock and the banks want them to happen. This could not be more obvious,
Adams
BlackRock and Circle Partnership
On April 11, Circle, the company behind the USDC stablecoin, announced the opening of features that allow investors in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) to move their shares to Circle in return for the USDC. To put it another way, the feature increases shareholder liquidity by enabling tokenized fund investors to convert their shares into stablecoins at any time of day.
One of Circle’s biggest investors is BlackRock. The businesses established a strategic alliance in April 2022, and as part of that alliance, BlackRock contributed to Circle’s $400 million investment round. Additionally, BlackRock oversees the management of the government money market fund Circle Reserve Fund, of which Circle is the only qualified participant.
The new BlackRock BUIDL fund on Ethereum is a high bandwidth pipeline between U.S. Treasuries and USDC. The banks will backdoor themselves into stablecoins – by acquiring/partnering/controlling crypto native companies – and they’ll lobby for stablecoin legislation and make it happen along the way. The US does not have the political will to build a central bank digital currency. They’re create one defacto through private bank issued stablecoins on public crypto networks like Ethereum.
Adams
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