All eyes are on Ether as it hits new highs for the first time since 2021, while Coinbase ramps up workplace security: Hodler’s Digest The total US dollar-pegged stablecoin market is projected to swell to $1.2 trillion by 2028, spurred on by comprehensive crypto regulations in the United States, according to crypto exchange Coinbase. Coinbase said the projections mean the US Treasury issuance would have to be $5.3 billion per week over the next three years to satisfy demand from stablecoin issuers, who use short-term US Treasury bills as backing collateral for their digital fiat tokens. This issuance schedule would cause a minor and temporary drop in three-month Treasury yields of about 4.5 basis points, contrary to analyst predictions that demand from stablecoin issuers will significantly reduce the interest on US government debt. Coinbase wrote in a market report: Read more
All eyes are on Ether as it hits new highs for the first time since 2021, while Coinbase ramps up workplace security: Hodler’s Digest The total US dollar-pegged stablecoin market is projected to swell to $1.2 trillion by 2028, spurred on by comprehensive crypto regulations in the United States, according to crypto exchange Coinbase. Coinbase said the projections mean the US Treasury issuance would have to be $5.3 billion per week over the next three years to satisfy demand from stablecoin issuers, who use short-term US Treasury bills as backing collateral for their digital fiat tokens. This issuance schedule would cause a minor and temporary drop in three-month Treasury yields of about 4.5 basis points, contrary to analyst predictions that demand from stablecoin issuers will significantly reduce the interest on US government debt. Coinbase wrote in a market report: Read more
Caitlin Long said mismatches between legacy financial systems and blockchain protocols, which settle in real-time, may impact TradFi firms. Institutional investors from the traditional finance world lack the updated risk tolerance models to deal with crypto and may face trouble during the next bear market, according to Custodia Bank CEO Caitlin Long. “Big Finance is here in a big way, and that seems to be driving this cycle. I suspect it will continue to drive this cycle,” Long told CNBC at the Wyoming Blockchain Symposium on Friday. Long said that legacy financial institutions are comfortable taking on large amounts of leverage due to fail-safes built into the system, like discount windows and other “fault tolerances.” Read more