Business, Technology

September 28, 2020

US banks can now back stablecoin assets

Source: Flickr (VIP Crypto Signals) 

The Gist

The announcement means that banks in the US may become more involved in cryptocurrency. 

The List

  • Stablecoins are cryptocurrencies which are "pegged" to the price of a fiat currency such as the US dollar. 
  • Companies which issue stablecoins must have an equivalent amount of assets stored in a bank. 
  • A statement by US regulators now gives the green light to US banks to provide custodial services to stablecoin issuers and even issue their own stablecoins (if they so choose). 
  • The amount of USD stablecoins issued has nearly doubled in just four months from 10 billion USD to over 18 billion USD. 
  • European regulators are concerned that stablecoins could pose a threat to some national currencies around the world. 

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