Tether faces its Euroclear moment
The world’s largest stablecoin is suspected of helping U.S. authorities seize millions of dollars worth of crypto profits from the Venezuelan government. The reputational hit could prove costly.
Stablecoins, scarce reserves, and the end of intraday liquidity complacency
A new BIS Working Paper is pitching “auction-based liquidity saving mechanisms” as the solution to upcoming intraday liquidity stresses.
The man with the shadow bullion bank
Theories about why Tether is piling into gold abound. But there’s no mystery. Basel III has constrained bullion banks, leaving ample opportunities for non-banks, especially as arbitrages open up.
The Weekly Peg: Making seigniorage great again
Academics warn stablecoins will shift seigniorage from governments to private firms, plus banks get the go-ahead to hold crypto to fund gas fees for token operations.
The Weekly Peg: An academical deluge
Eichengreen, Cecchetti, Garratt, Portes, Andolfatto, Uhlig, Wu all talk stablecoins.
The Weekly Peg: If the mountain won’t come to JPM, let JPM come to the mountain
As tokenized deposits rain on the stablecoin parade, the fintech life cycle nears completion. Fragmentation is becoming unsustainable. Plus, yen stablecoins come to the rescue of Takaichi.
The BoE’s mic drop moment
Who cares about stablecoin holding limits when you’ve got access to official liquidity support and exemptions?
The Weekly Peg: World wakes up to the ‘dollarization by stablecoin’ effect
Plus, the Fed’s Stephen Miran on the impact of stablecoins on loanable funds and the ECB’s main markets man on why non-remuneration is a regulatory ‘original sin’.
The Weekly Peg: The Lugano download (3/3)
Tether news: Stablecoins can boost US dollar hegemony, Tether CEO says. TLDR: CEO Paolo Ardoino on how and why Tether, the world’s largest stablecoin issuer, has become an unexpected ally of the U.S. Treasury. Facts and stats: Tether now holds about $181 billion in reserves of which $135 billion is in U.S. Treasuries, a number […]
The Weekly Peg: The end of usury? (2/3)
Will stablecoins initiate a new era of (biblically compliant) zero-interest finance, or are workarounds already in the making?