MakerDAO explored the introduction of government bonds, real estate, gold and other physical assets as collateral, and Aave Limited was approved as an electronic money institution license by the British Financial Services Regulatory Authority.
Original title: “MYKEY Stablecoin Report 16: The market value of stablecoins rose to 16.556 billion US dollars; the connection between stablecoins and real assets”
Written by: Jiang Haibo
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- The market value of major stablecoins in circulation reached 16.556 billion U.S. dollars, an increase of 601 million U.S. dollars compared to last week.
- Tether issued two additional issuances on Tron, totaling 450 million USDT.
- On August 29, China Construction Bank briefly opened its digital currency wallet business.
- CCB’s digital currency wallet supports functions such as digital RMB bank card recharge, transfer, QR code collection and payment, NFC one-touch payment, and cancellation.
- MakerDAO stated that there have been applications from companies in the areas of treasury bonds, real estate, gold and commodity indexes, and supply chain finance to use assets as collateral for DAI.
- Aave applied for an Electronic Money Institution (Electronic Money Institution) license from the Financial Services Authority of the United Kingdom in 2018, which was approved in July this year. Aave will continue to apply for other licenses.
- Due to the increased DeFi activity on EOS, Tether issued an additional 10 million USDT on the EOS network on August 29.
Overview of stablecoin data
We first review the changes in the basic information of each stablecoin in the past week (August 22, 2020-August 28, 2020, the same below).
Market circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
Currently, the market value of major stablecoins in circulation has reached 16.556 billion U.S. dollars, an increase of 601 million U.S. dollars compared with last week.
Source: MYKEY, Coin Metrics
In the past week, Tether has issued additional issuances on Tron twice, totaling 450 million USDT. The circulation of USDC, PAX, TUSD, HUSD, DAI, and GUSD increased by 86.48 million, 17.97 million, 30.01 million, 1.24 million, 15.06 million, and 1.28 million, respectively, and the circulation of BUSD decreased by 980,000.
Number of holding addresses
Source: MYKEY, DeBank
Last week, the number of main stable currency holding addresses in the Ethereum network dropped overall, with a total decrease of 101991.
Source: MYKEY, DeBank
The number of TUSD and DAI holding addresses increased by 645 and 3860 respectively, while the number of USDT, USDC, and PAX holding addresses decreased by 88,075, 18,249, and 172 respectively.
Number of active addresses
Source: MYKEY, Coin Metrics
Last week, the number of daily active addresses of major stablecoins increased by 4.75% on average over the previous week.
24 hours on-chain transactions
Source: MYKEY, Coin Metrics
Compared with the previous week, the number of daily transactions of major stablecoins increased by 3.13% on average.
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 6.85% from the previous week.
The connection between stablecoins and real assets
On August 29, China Construction Bank briefly opened its digital currency wallet business. Through the “digital currency” function in the China Construction Bank App, you can use the digital renminbi, which is China’s central bank digital currency. CCB’s wallet supports functions such as digital RMB bank card recharge, transfer, QR code collection and payment, NFC one-touch payment, and cancellation. Since the central bank’s digital currency is equivalent to legal currency and cannot be rejected, Alipay and WeChat may also access digital RMB in the future. Central bank digital currency is also a kind of stable currency. It is foreseeable that central bank figures will be used by many people as a supplementary payment method. In this report, we will introduce the connection between stablecoins and real assets.
Since the beginning of this year, MakerDAO has added USDC, WBTC, etc. as collateral. Last week MakerDAO stated that Maker’s focus will be on introducing physical assets as collateral for DAI in the next 1-3 years. Companies from the fields of national debt, real estate, gold and commodity indexes, and supply chain finance have already applied to use these assets as collateral for DAI. Companies and assets being applied for include:
- Real estate mortgage company New Silver uses the Centrifuge protocol to implement asset tokenization (NS-DROP)
- PAX GOLD (PAXG), an ERC20 gold token issued by the trust company Paxos on Ethereum
- Digital securities issued by Arca on Ethereum in the form of ARCoin (corresponding to 1-year, 2–10 and 10-year US government bonds)
- Supply chain finance company Harbor adopts Centrifuge protocol to initiate asset tokenization (HTC-DROP)
- WiV Technology’s tokenized wine commodity index fund (WiV) launched on Ethereum
The above is just applying as part of DAI collateral. Without the introduction of real assets, the circulation of DAI has now reached 443 million, and the market value of MKR has reached 676 million US dollars.
Aave is a decentralized lending protocol, managed by AaveDAO. As early as 2018, Aave Limited, Aave’s entity in the United Kingdom, applied for an Electronic Money Institution license from the Financial Services Regulatory Authority of the United Kingdom, and recently obtained the license. This allows Aave to be able to issue electronic currency substitutes and provide payment services in Europe, just like Coinbase and Revolut. Aave users can purchase stablecoins and other assets in the Aave ecosystem through legal currency. Stani Kulechov, the founder of Aave, stated that the Aave entity will continue to apply for other licenses to facilitate new users to join the Aave ecosystem.
Telos is a smart contract platform running on EOSIO, supporting the creation of decentralized applications and decentralized autonomous organizations. At the end of August, Telos announced a partnership with Katalyo to tokenize Croatian real estate worth 35 million US dollars. Katalyo will issue two tokens for each real estate. One token represents the ownership of the real estate, and the other is a stable currency anchored in legal currency generated by rental income.
As a global payment company, VISA is committed to providing the greatest value to individuals, businesses and economies. Digital currency provides an opportunity for VISA to continue to expand its service range. Nowadays, the digital currency (stable currency) backed by legal currency combines the stability of digital currency with currencies such as the U.S. dollar to become a promising new payment method. The concept of stablecoins has gradually attracted attention outside the financial technology field, including financial institutions and central banks. Consumers and businesses are also using digital currency, leading to a rapid increase in the circulation of digital currency. VISA cooperates with the regulated and approved digital currency platforms Coinbase and Fold to provide blockchain-based services to the existing 61 million merchants. More than 25 digital currency wallets have been connected to VISA, which provides users with an easy way to use VISA debit or prepaid cards to spend from their digital currency balances wherever VISA is accepted. VISA has been committed to cooperating with global policymakers and organizations to help everyone better understand digital currencies.
According to a tweet issued by Sygnum on August 27, Galaxus, the largest online retailer in Switzerland, started using Sygnum Bank’s stablecoin Digital Swiss Franc (DCHF) to complete e-commerce payments. DCHF was launched in March 2020 and anchored to the Swiss franc. Sygnum claims to be the first licensed bank in Switzerland to issue stablecoins. The bank holds a digital asset banking license from the Swiss Financial Market Supervisory Authority (FINMA).
The outbound of stablecoins is a trend. Not only companies in the blockchain industry are actively attracting external capital to join, but also traditional financial institutions. It is foreseeable that stablecoins will enter our daily lives in the future.
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