Friday, August 12, 2022
No menu items!

Curve Stablecoin Despite Regulatory Scrutiny

Must Read

Description:

In spite of the scrutiny from regulators, the development of the Curve Stablecoin has begun.

Short News:
The fall of TerraUSD is still being discussed by regulatory authorities throughout the world.

Liquidity pool Curve wants to develop its first native stablecoin, joining a number of institutional market players seeking market share after Terra’s UST stablecoin exploded.

Sub:
“Michael Egorov will overcollateralize the stablecoin.”

TerraUSD, whose fall sent digital-asset markets plunging, was criticized for not retaining enough collateral to hold its dollar peg.

Overcollateralized stablecoins have a reserve of cryptocurrency tokens or other assets greater than the number of stablecoins issued.

It’s comparable to bitcoin-denominated loans, which require the debtor to put up more cryptocurrency than is needed to repay the loan.

Egorov didn’t detail the new product’s reserve assets. Stablecoins are backed by the dollar, euro, or other fiat currencies.

Tether and other stablecoins have been criticized for lacking transparency and investing client funds in illiquid assets.

In the wake of TerraUSD’s collapse, regulators worldwide, including US Treasury Secretary Janet Yellen, are ramping up stablecoin legislation.

IOSCO and the Bank for International Settlements’ CPMI announced final stablecoin guidelines this month.

US regulators fear stablecoins’ openness and standards. “April and May were stablecoins’ heyday. Source?'” During a Blockworks webinar, Checkout.com’s SVP and treasurer noted.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Spider-Man Remastered Supports DLSS, Ultrawide Monitors

Description: The Spider-Man Remastered Version Provides Support DLSS, Ultrawide Monitors Short News:Spider-Man Remastered is coming to PCs shortly, and the official...

More Articles Like This