The circulating market value of major stablecoins reached 22.13 billion U.S. dollars, USDC was deployed on Algorand and Solana, and BUSD continued to grow on the Binance Smart Chain.
Original title: “Encrypted Stablecoin Report 21: Stablecoins Out of Ethereum Global Stablecoins Arouse Regulatory Awakening”
Written by: Yao Xiang, researcher at MYKEY
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- The circulating market value of major stablecoins reached 22.13 billion U.S. dollars, an increase of 1.510 billion U.S. dollars in the past month.
- In the past month, the circulation of USDT, USDC, BUSD and DAI increased by 299 million, 306 million, 301 million, and 26 million respectively; TUSD decreased by 194 million.
- USDC has stepped out of Ethereum and has been deployed on Algorand and Solana, with a supply exceeding 30 million US dollars.
- BUSD continues to grow on the Binance Smart Chain.
- Stable coins have attracted the attention of global regulators. The European Commission, the Financial Stability Board, and the IMF have issued regulatory frameworks or reports respectively.
Overview of stablecoin data
In the past month (September 26, 2020-October 25, 2020, the same below, the data report of the natural month will be provided from next month), the basic information of each stable currency has undergone tremendous changes.
Market circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
At present, the circulating market value of major stable currencies has reached 22.13 billion U.S. dollars, an increase of 1.510 billion U.S. dollars in the past month.
Source: MYKEY, Coin Metrics
In the past month, Tether has issued an additional 299 million USDT on the Ethereum chain. The circulation of USDC increased by 306 million, the circulation of BUSD increased by 301 million, the circulation of DAI increased by 25.6 million, and the circulation of TUSD decreased by 194 million. The circulation of PAX, HUSD, and GUSD increased by 74.89 million, 96.12 million and 510,000 respectively.
Number of holding addresses
Source: MYKEY, DeBank
In the past month, the number of main stable currency holding addresses in the Ethereum network has dropped, with a total decrease of 215,000.
Source: MYKEY, DeBank
The number of USDT holding addresses has dropped significantly, decreasing by 253,000, and the number of USDC holding addresses has increased by 33,000. The number of other stable currency holding addresses has not changed much.
Number of active addresses
Source: MYKEY, Coin Metrics
Last week, the number of daily active addresses of major stablecoins increased by 6.55% on average over the previous week.
24 hours on-chain transactions
Source: MYKEY, Coin Metrics
Compared with the previous month, the daily average number of transactions for major stablecoins increased by 11.83%.
24-hour on-chain transaction volume
Source: MYKEY, Coin Metrics
Source: MYKEY, Coin Metrics
The average daily transaction volume of major stablecoins dropped by an average of 28.82% from the previous month.
Stablecoin goes out of Ethereum
Around 70% of stablecoins still choose Ethereum as the main issuance platform, and except for USDT which chooses to be issued on multiple chains, most stablecoins choose Ethereum as the only issuance platform. During the continuous congestion of Ethereum, in addition to the steady increase of USDT on Tron, stablecoins have gradually stepped out of the Ethereum platform. USDC chose multiple smart contract platforms to deploy, while BUSD began to expand within its own ecosystem.
USDC has been deployed on Algorand/Solana
The Centre Alliance announced several pieces of cooperation information in September and October, announcing that it will deploy USDC assets on Algorand, Stellar, and Solana. Among them, the supply on Algorand and Solana has reached 7.180 million US dollars and 25 million US dollars respectively, and USDC on Stellar will be issued in the first quarter of 2021.
BUSD continues to grow on BSC
As a stable currency asset issued by Binance, BUSD not only exists in the form of ERC-20 on Ethereum, but is also deployed on Binance Chain (BEP2) and Binance Smart Chain (BEP20). With the progress of mining on BSC, the number of BUSD holding addresses on BSC has exceeded 9,100, which is basically the same as the number of BUSD holding addresses on Ethereum. Since the cross-chain bridge of assets is provided by Binance Exchange, it is not easy to count the supply of BUSD on each chain. However, according to bscscan, the supply of BUSD on BSC should have exceeded 40 million U.S. dollars. Among them, the supply of BUSD in Pancake The amount of BUSD exceeds 18 million U.S. dollars.
Stable coins attract global regulatory attention
As early as 2019, stablecoins have attracted the attention of global regulators. The concept of “global stablecoin” was first formally proposed in the “Global Stablecoin Evaluation Report” of the G7 stablecoin working group in October 2019. “Global” mainly refers to the stablecoin that spans multiple jurisdictions. The Bank for International Settlements also released a report on strengthening cross-border payments in July 2020, suggesting that central bank digital currencies and global stablecoins can provide potential assistance for cross-border payments.
The rapid growth of stablecoins in 2020 has attracted the attention of global regulators. The European Commission, the G20 Group Joint Financial Stability Board, and the International Monetary Fund have successively issued regulatory reports on stable currencies.
European Commission announces regulatory framework for crypto assets and stablecoins
The European Commission published the final draft of the regulatory framework for encrypted assets on September 24. The report is 168 pages long and elaborates on the background of the proposal, the current status of the development of encrypted assets, and regulatory recommendations for stablecoins.
The report pointed out that although the scale of the encrypted asset market is still small and currently does not pose a threat to financial stability, this situation may change with the emergence of “global stablecoins”. Because “global stablecoins” have stable value and use the network effects of companies that promote these assets to seek wider applications. The European Commission will create a comprehensive and holistic EU “stable currency” framework for encrypted assets that are not covered by the EU’s existing financial services legislation to mitigate the risks identified by the Financial Stability Commission, especially financial stability risks.
The plan still needs to be considered by the legislative counterparts of the European Commission, the European Parliament and the European Council.
The G20 Group and the Financial Stability Committee release a stablecoin regulatory report
On October 23, the Financial Stability Board (FSB) released the “Regulation, Supervision, and Supervision of the “Global Stable Coin” Arrangement” report, which made high-level recommendations for the supervision, supervision and supervision of the “Global Stable Coin” (GSC) arrangement .
The FSB pointed out that the so-called “stable currency” is a specific type of encrypted asset, through an attempt to associate its value with one or more other assets (such as sovereign currencies) to solve the high volatility of “traditional” encrypted assets Sexual issues have the potential to improve the efficiency of financial service provision, but at the same time they may pose risks to financial stability, especially in the case of large-scale adoption. Stable coins have the potential to improve payment efficiency and promote financial inclusion, but the use of “Global Stable Coins” (GSC) may have a huge impact on the judicial system of many countries.
The FSB was established after the G20 summit in 2009. It was officially commissioned by the G20 to provide observation reports and policy recommendations for the global financial system, sponsored and led by the Bank for International Settlements.
The Group of Twenty (G20) is working with the International Monetary Fund (IMF), the World Bank, and the Bank for International Settlements (BIS) to discuss the complexity of global stablecoins in practice and technology, including design and interoperability, and Assess the potential and challenges of central bank digital currencies in cross-border payments. By the end of 2022, the G20 will work with the IMF, the World Bank, and BIS to complete the framework for regulating stablecoins and research on central bank digital currency design, technology, and experiments ( source ).
The International Monetary Fund issued a report: Central bank digital currency has potential, but it cannot solve all problems
A report issued by the International Monetary Fund (IMF) on October 16 stated that the central bank digital currency (CBDC) may benefit countries that wish to increase control over their monetary policy, but it will not solve all crises.
The IMF pointed out that new digital currencies, including CBDC and Global Stablecoin (GSC), have attracted regulatory attention. CBDC and GSC can reduce transaction costs through competition, broaden service channels through mobile devices, and promote financial inclusion. The cross-border use of digital currency will also bring risks and policy challenges. For countries with economic downturns, CBDC is not a panacea. It cannot save those countries with high inflation rates or similar domestic problems.
The report concludes that CBDC has not qualitatively changed the global pattern of currencies, but it may intensify the effects of currency substitution and currency internationalization. And if the GSC and the existing currency have the same accounting unit, it may have a currency effect similar to that of CBDC, and at the same time there is a potential threat to financial stability. If a new GSC with an independent accounting unit appears (for example, a new currency with a basket of currencies as a reserve), it can also provide better financial services, but it will have a more profound impact on global currency and financial stability.
