Stablecoins continue to witness soaring demand, particularly in emerging economies. A recent report from BVNK and the Centre for Economics and Business Research reveals that businesses and consumers in 17 countries are prepared to pay an average premium of 4.7% for stablecoins pegged to the US dollar, with the premium hitting 30% in Argentina. By 2027, these nations are expected to spend a staggering $25.4 billion in premiums alone to access stablecoins. The inefficiencies of current cross-border payment systems are highlighted in the report, with $11.6 billion trapped in working capital due to settlement delays. Stablecoins are poised to facilitate $2.8 trillion in cross-border payments by the end of this year.
Circle’s USD Coin (USDC) has seen a surge in trading volume in July, driven by compliance with new European regulations. Meanwhile, Tether’s USDT (USDT) continues to dominate the stablecoin market, holding 70% of the $164 billion global market capitalization. “With industry leaders predicting the stablecoin market cap will grow from $160bn to $1 trillion in the next few years, stablecoin payment volumes could reach $15 trillion by 2030,” said BVNK co-founder Chris Harmse.
Tether Reports Record-Breaking Profit
Tether has announced record profits of $5.2 billion for the first half of 2024 and a notable increase in its US Treasury holdings to $97.6 billion. By the end of July, USDT’s total market capitalization reached approximately $114 billion, with total reserves exceeding $118 billion. Remarkably, Tether’s Treasury reserves now surpass the size of all but 17 world governments, including Germany, the United Arab Emirates, and Australia. Tether is reinvesting a portion of its profits in various adjacent industries, such as sustainable energy, Bitcoin (BTC) mining, data, artificial intelligence infrastructure, peer-to-peer telecommunications technology, neurotech, and education.
Crypto Trading Via UAE Banks
Crypto exchange M2 has announced that residents of the United Arab Emirates can now buy and sell Bitcoin and Ether (ETH) directly using their bank accounts. This integration allows for the direct conversion of dirhams into BTC and ETH, enabling users to trade these cryptocurrencies against the local currency on M2’s spot markets. Additionally, users can deposit and withdraw dirhams, according to an executive from the exchange. The new service is regulated by the UAE government and is expected to help users quickly adapt to market changes.
Polymarket’s Growth Amid US Elections
Decentralized prediction platform Polymarket has exceeded $1 billion in betting volume due to the hype surrounding the upcoming US presidential elections. Significant wagers on the election’s outcome have driven this surge, with over one-third of the volume occurring in just the last 30 days. Data from Dune Analytics shows that betting volume on Polymarket reached $343 million as of July 30, up from $111 million in June and $63 million in May. Polymarket recently closed a $70 million Series B funding round led by Peter Thiel’s Founders Fund, with contributions from Ethereum co-founder Vitalik Buterin. The platform has also onboarded MoonPay to expand its payment options.
Coinbase’s Custodial Services for Australian Bitcoin ETF
Coinbase has been selected as a custody partner for a new spot Bitcoin exchange-traded fund (ETF) in Australia. DigitalX, the issuer of the DigitalX Bitcoin ETF (BTXX), chose Coinbase following the fund’s launch on July 12. According to a recent announcement, Coinbase will provide custody and “advanced trading execution services” for BTXX through its institutional-grade platform, Coinbase Prime. The exchange has become a partner and custody provider for 10 spot Bitcoin ETFs and eight of the nine newly approved Ether ETFs in the United States. Major BTC holders, including the Grayscale Bitcoin Trust and BlackRock’s iShares Bitcoin Trust, are among Coinbase’s custody clients.
Exclusive Interview with Robert F. Kennedy Jr.
In an exclusive interview, independent presidential candidate Robert F. Kennedy Jr. shared his views on integrating Bitcoin into US reserves. He believes that doing so is the only way to preserve the dominance of the dollar. This insight provides a unique perspective on the potential future of US monetary policy and the role of cryptocurrency.
The business of blockchain and cryptocurrency is evolving rapidly. Stay tuned for more updates and insights every Thursday in the Crypto Biz newsletter.
