Crypto Biz: Stablecoins are serious business, Feb. 17-24
Stablecoins used to be a sort of taboo subject in the crypto community after it became common practice to criticize Tether’s reserve backing. Are you really a seasoned crypto investor if you haven’t gone down the USDT rabbit hole? Some of those concerns were finally quelled in May 2021 when Tether passed an assurance test by disclosing its reserves for the first time. For some onlookers, the reserve breakdown created more questions than answers due to the stablecoin issuer’s oversized exposure to commercial paper.
The stablecoin market has grown leaps and bounds over the past four years. While Tether remains firmly in the lead, Circle Internet Financial has surged through the rankings with the success of USDC Coin (USDC). TerraUSD (UST) is also a top player, having just received significant backing from major venture funds.
This week’s Crypto Biz newsletter dissects the evolving business of stablecoins. We also turn your attention to a sizable acquisition from a major stock exchange operator that could open the door to new crypto investment opportunities.
USDC operator Circle had quite a momentous week. On Feb. 17, the company announced that its valuation had reached $9 billion, up from $4.5 billion in July 2021, after it revised its merger agreement with Concord Acquisition Corp. The doubling of Circle’s value in less than eight months partly reflects the massive growth of USDC, which has quickly emerged as Tether’s primary competitor in the stablecoin market. Circle was back in the headlines on Feb. 23 after the company had launched new business accounts to aid enterprise adoption of stablecoins and crypto payments. Clearly, stablecoins aren’t just dry powder for crypto investors — they’re a gateway to mainstream
Read more on cointelegraph.com
