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Ethereum layer-2 networks now hold $13.5 billion in stablecoins, reflecting a growing demand within the cryptocurrency ecosystem. Arbitrum One leads with $6.75 billion, followed by Base at $3.56 billion, as the stablecoin market capitalization surpasses $200 billion, driven by Tether (USDT) and USD Coin (USDC). The introduction of MiCA regulations in the EU may further boost stablecoin adoption, enhancing their role in payments and decentralized finance.
Tether plans to launch an AI platform by March 2025, as announced by CEO Paolo Ardoino. This initiative comes amid a surge in AI-related discussions within the crypto sector, which accounted for 35% of conversations recently, following a peak of 51%. The company has also diversified its offerings with the launch of Hadron, a platform for asset tokenization.
The EU's upcoming MiCA crypto regulations are reshaping the digital token market, particularly impacting stablecoins like Tether’s USDT, which many exchanges have delisted to comply. Experts warn that these regulations may reduce market liquidity and make the EU less appealing to traders, as USDT is crucial for transactions and cross-border transfers. While Circle has secured the necessary e-money license, Tether has not, potentially leading to its removal by the end of the year, amid concerns over illegal activities associated with USDT.
Ethereum Layer-2 platforms have reached a record $13.5 billion in locked stablecoins, with Arbitrum leading at $6.75 billion. Tether's market cap surged to over $140 billion, while the Dencun upgrade has significantly increased Layer-2 transaction volumes, highlighting the growing importance of stablecoins in the crypto ecosystem.
Tether has invested in European stablecoin issuer StablR as it navigates compliance challenges with the upcoming MiCA regulations. This strategic move allows Tether to support fully compliant stablecoins while distancing itself from its non-compliant USDT, which faces delistings from exchanges. StablR, backed by Tether, is positioned to offer regulated digital assets through its Electronic Money Institution license, aligning with the EU's push for standardized governance and verifiable reserves in the stablecoin market.
Tether has invested in Malta-based stablecoin firm StablR, enhancing its presence in Europe's stablecoin market amid USDT uncertainties. StablR operates the euro-backed EURR and dollar-pegged USDR, utilizing Tether's Hadron platform, as the European stablecoin market, valued at $367 million, prepares for new regulations. StablR, which raised €3.3 million in a seed round, aims to deliver compliance and liquidity in the evolving landscape.
Tether has invested in StablR, a European stablecoin provider, to enhance stablecoin adoption in Europe as the EU's MiCA regulation deadline approaches. StablR, now licensed in Malta, will use Tether's Hadron platform for asset tokenization and compliance, aiming to boost the EURR and USDR stablecoins' interoperability. The move reflects Tether's commitment to compliance and innovation in the growing digital asset economy.
Tether's USDT has been recognized as an Accepted Virtual Asset (AVA) by the Abu Dhabi Global Market's Financial Services Regulatory Authority, marking a significant regulatory milestone. This designation allows businesses in the ADGM to offer USDT-related services, facilitating its integration into the UAE's financial landscape. Tether's CEO emphasized the importance of this achievement for promoting financial inclusion and innovation in the region.
Ripple has received final approval from the New York Department of Financial Services to launch its stablecoin, Ripple USD (RLUSD), which will be pegged 1:1 to the US dollar and fully backed by USD deposits and short-term US government treasuries. CEO Brad Garlinghouse announced the news, stating that exchange and partner listings will be available soon.In a separate incident, Haven Protocol experienced a significant mint exploit, resulting in the illicit creation of over 500 million XHV tokens, causing the token's price to plummet by over 60%. The breach was attributed to a vulnerability in the range proof validation code, leading to a critical security gap in the protocol.
Ripple has secured final approval from the New York Department of Financial Services for its RLUSD stablecoin, which will be backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. CEO Brad Garlinghouse announced that RLUSD aims to penetrate the US market and compete with Circle's USDC, targeting large institutional players. This launch coincides with a significant rally in Ripple's XRP token, which has surged 400% since the US elections.
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