Tag: USDT

First Digital Group Launches New Stablecoin FDUSD to Revolutionize Global Finance

by Blockchain News

Asia’s leading trust company and qualified custodian, First Digital, is making waves in the global financial ecosystem with the announcement of its new stablecoin, First Digital USD (FDUSD). Launched by FD121 Limited under the brand “First Digital Labs,” this novel stablecoin pledges to bring stability, diversification, and innovation to the existing financial landscape.

Stablecoins, digital currencies pegged to stable assets like the U.S. dollar, provide a hedge against volatility, a means of remittance, and a cost-effective gateway to financial services. With FDUSD, First Digital Group aims to enhance these benefits by offering a programmable stablecoin backed 1:1 by U.S. dollar reserves held in regulated Asian financial institutions.

First Digital Trust Limited, the custodian and trust company, will maintain FDUSD reserves in segregated accounts, ensuring a secure and robust financial framework for the stablecoin. Notably, the redeemable nature of FDUSD adds to its appeal, as users can exchange their tokens for equivalent U.S. dollar value, strengthening the trust in the 1:1 backing.

Vincent Chok, CEO of First Digital, underscored the significance of this development, “The launch of this stablecoin marks a significant milestone in our mission to provide a secure, efficient digital currency seamlessly integrated into everyday transactions. Especially in these uncertain times, we see a growing demand for predictability. This was a driving factor in conceptualizing FDUSD.”

First Digital remains committed to transparency, pledging open scrutiny for every aspect of FDUSD. In collaboration with local and overseas regulatory authorities, First Digital Labs aims to ensure comprehensive compliance with all applicable laws, both present and future. Their objective is to set new standards of trust and stability in digital currency, guided by regulatory compliance.

In a world increasingly moving towards digital currencies, First Digital’s FDUSD brings a novel, secure, and reliable alternative to the table, marking a significant stride forward in digital asset innovation. For detailed information, prospective users are advised to review the FDUSD Stablecoin Whitepaper, the FD121 Account User Agreement, the FDD Terms, the Privacy Policy, and the FDD Risk Factors.

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Tether USD₮ Sets New Record Cementing Its Status as the Top Stablecoin for Global Financial Freedom

by Blockchain News

Tether, the leading blockchain-enabled platform behind the widely used stablecoin, USD₮, has achieved a significant milestone by surpassing its previous all-time high market cap of $83.2 billion, which was set in May 2022. The company’s Chief Technical Officer, Paolo Ardoino, attributes this achievement to the growing demand for financial freedom and the trust that customers have placed in Tether.

Ardoino stated, “Today’s numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it.” He emphasized Tether’s role in providing a safe haven for the unbanked and enabling individuals in emerging markets to preserve their buying power, even in the face of currency devaluation. Tether’s resilience in volatile markets and its commitment to transparency have earned the trust of customers, resulting in its current success. The company aims to expand access to financial freedom globally, with a particular focus on emerging markets.

Since its establishment in October 2014, Tether has solidified its position as the leading stablecoin and a trailblazer in financial freedom and innovation. The USD₮ stablecoin has become the most traded cryptocurrency, surpassing all competing offerings combined. Tether combines the advantages of digital currency, such as instant global transactions, with the stability of traditional currency. By prioritizing transparency and compliance, Tether provides a fast and cost-effective method for conducting financial transactions.

Tether’s recent attestation further underscores its commitment to transparency and highlights its efforts in emerging markets as a refuge from volatile markets. The company’s impressive performance in the first quarter, reporting a net profit of $1.48 billion, has significantly strengthened its reserves. With approximately 85% of its investments in cash, cash equivalents, and short-term deposits, along with a 20% increase in token supply quarter over quarter and excess reserves of around 2.5 billion, Tether has firmly established itself as a trustworthy entity with a positive outlook for the future.

Tether remains dedicated to providing financial freedom and innovation to users worldwide, especially in emerging markets. As a trusted stablecoin, Tether continues to lead in transparency, resilience, and accessibility, offering a secure and stable digital currency option for individuals globally.

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Tether Amplifies Cryptocurrency Presence in Georgia: Invests in Payment Processor CityPay.io

by Blockchain News

Tether Operations Limited (USDT issuer), the driving force behind the highly adopted stablecoin blockchain platform tether.to, has magnified its presence in Georgia’s cryptocurrency landscape through a strategic investment in CityPay.io. This leading payment processing company is active in over 600 locations nationwide, encompassing retail outlets, hospitality venues, and eateries.

With an increasing cryptocurrency demand and nearly 2.89% of Georgians owning some form of crypto, the country, host to 130 crypto ATMs, has been identified as the fourth most crypto-ready globally by Forex Suggest in 2022. Tether’s investment in CityPay.io aligns with Georgia’s commitment to becoming a crypto-friendly hub, aiding the seamless integration of crypto payments.

CityPay.io, offering streamlined payment experiences to customers of renowned brands like Wendy’s and Radisson Hotels, among many others, will utilize Tether’s investment to enhance its service offering and improve efficiency. This strategic move marks Tether as the first stablecoin to invest in CityPay.io, catalyzing a significant milestone in Georgia’s payment processing industry.

The investment will bolster CityPay.io’s ability to extend its operations and refine its services, with the goal of benefiting customers across Georgia and the Commonwealth of Independent States (CIS). Tether’s Chief Technology Officer, Paolo Ardoino, emphasized the firm’s commitment to the integration of a more connected and accessible financial system.

“We are excited to be working with CityPay.io to bring greater innovation and efficiency to the payment industry in Georgia,” stated Ardoino. Eralp Hatipoglu, CEO of CityPay.io, echoed the excitement, expressing how Tether’s investment will expedite the company’s growth and extend its services to more Georgian customers.

This investment heralds Tether’s expansion strategy in Georgia, reinforcing the company’s dedication to revolutionizing the payment industry with more innovative initiatives expected to be announced soon

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Tether Ventures into Sustainable Energy Production and Bitcoin Mining in Renewable-Rich Uruguay

by Blockchain News

Tether, the company renowned for powering the world’s foremost stablecoin, announced today its ambitious venture into energy production and sustainable Bitcoin mining in Uruguay. The company is expanding its portfolio to include the energy sector, signaling its firm commitment towards energy innovation and the future of cryptocurrency.

This initiative will be implemented in collaboration with a local licensed company in Uruguay. This strategic decision underpins Tether’s aspiration to be a global tech leader, extending its influence beyond the realms of finance and communication.

In light of this announcement, Tether is recruiting experts in the energy sector to bolster its team. The company’s endeavor into renewable energy sources aims to support sustainable Bitcoin mining, thereby contributing towards a secure and robust monetary network globally.

Paolo Ardoino, CTO of Tether, emphasized Tether’s dedication to sustainable practices. He stated, “By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining. Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network.”

Uruguay, with 94% of its electricity generation from renewable sources such as wind and solar power, offers ideal conditions for this endeavor. The country’s abundant natural resources allow for the establishment of renewable energy infrastructures like wind farms, solar parks, and hydropower projects, guaranteeing a constant supply of clean and environmentally friendly energy.

Capitalizing on Uruguay’s robust energy infrastructure, Tether has found the perfect platform for its Bitcoin mining operations. The reliable grid system, capable of meeting modern industrial demands, ensures Tether’s operations will be both efficient and sustainable.

This latest venture represents a significant milestone where energy and cryptocurrency merge, affirming Tether’s role as a trailblazer at the forefront of technology, sustainable practices, and financial innovation.

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US Draft Bill Proposes Framework for Stablecoins

by Blockchain News

A new draft bill published in the United States aims to provide a regulatory framework for stablecoins. The bill proposes that the Federal Reserve oversee non-bank stablecoin issuers such as Tether and Circle, which respectively issue USDT and USDC. Insured depository institutions seeking to issue stablecoins would fall under federal banking agency supervision.

The bill also establishes criteria for approval of stablecoin issuers, including the ability to maintain reserves backing the stablecoins with U.S. dollars or Federal Reserve notes, Treasury bills with a maturity of 90 days or less, repurchase agreements with a maturity of seven days or less backed by Treasury bills with a maturity of 90 days or less, and central bank reserve deposits. Issuers must also demonstrate technical expertise and established governance, as well as the benefits of offering financial inclusion and innovation through stablecoins.

Additionally, the bill proposes a two-year ban on issuing, creating or originating stablecoins not backed by tangible assets. It also mandates that the U.S. Department of the Treasury conduct a study on “endogenously collateralized stablecoins.” These are stablecoins that rely solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.

The bill also allows the U.S. government to establish standards for interoperability between stablecoins. It further determines that Congress and the White House would support a Federal Reserve study on issuing a digital dollar.

Stablecoins are a class of cryptocurrencies that attempt to offer investors price stability by being backed by specific assets or using algorithms to adjust their supply based on demand. The draft bill defines stablecoins and proposes a regulatory framework that could potentially provide greater stability and protection for investors. It also aims to prevent the use of stablecoins for illegal activities, such as money laundering and terrorist financing. If enacted, the bill would require stablecoin issuers to register and could result in up to five years in prison and a fine of $1 million for failure to do so.

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Binance Replaces BUSD with TUSD and USDT in SAFU Fund

by Blockchain News

Binance, one of the world’s largest cryptocurrency exchanges, announced on March 17 that it has replaced the Binance USD (BUSD) holdings in its Secure Asset Fund for Users (SAFU) with TrueUSD (TUSD) and Tether (USDT). The move comes in response to Paxos’ recent move to stop minting new BUSD, which has led to the asset’s market capitalization falling. SAFU is an emergency insurance fund established by Binance in July 2018 to protect users’ funds in case of security breaches or other unforeseen events.

Binance committed a percentage of trading fees to grow the fund, which was valued at $1 billion as of Jan. 29, 2022. SAFU’s wallets initially consisted of BNB (BNB), Bitcoin (BTC), and Binance USD, which has now been replaced by TUSD and USDT. Binance assured users that the change would not impact them, their funds would continue to be held in publicly verifiable addresses, and BUSD would continue to be supported. The exchange added that it would closely monitor the fund to ensure that it remains sufficiently capitalized and top it up periodically as necessary using its own funds.

On Feb. 13, BUSD issuer Paxos Trust Company announced it would stop issuing new BUSD effective Feb. 21 in accordance with the directions of and in coordination with the New York Department of Financial Services. Days after reports emerged that United States regulators were scrutinizing Paxos and BUSD, Binance minted nearly $50 million worth of TUSD. The transaction took place on Feb. 16, according to data from Etherscan, and came two days after Binance CEO Chanpeng Zhao mentioned in a Feb. 14 Twitter Space that Binance would look to “diversify” its stablecoin holdings away from BUSD.

With the U.S. Securities and Exchange Commission also taking action against BUSD, some crypto community members have questioned whether stablecoins are the real issue at hand or if it’s actually about Binance, as the SEC didn’t take action against Paxos’ gold-backed stablecoin, Pax Gold (PAXG).

Stablecoins, such as BUSD, TUSD, and USDT, are digital currencies designed to maintain a stable value relative to a reference asset, such as the US dollar. They have become increasingly popular in recent years as a means of facilitating transactions on cryptocurrency exchanges without having to convert to fiat currency, which can be costly and time-consuming.

However, stablecoins have also come under scrutiny from regulators due to concerns about their lack of transparency and potential for use in illicit activities. The recent actions by the SEC and the New York Department of Financial Services against BUSD and Paxos are part of a wider crackdown on stablecoins and cryptocurrency more broadly.

In response, cryptocurrency exchanges and other market participants are looking to diversify their stablecoin holdings to reduce their exposure to any one particular asset. This appears to be the motivation behind Binance’s decision to replace BUSD with TUSD and USDT in its SAFU fund.

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BlockFi Suspends Withdrawals Following FTX Crisis

by Blockchain News

Crypto lender BlockFi has suspended business following the collapse of crypto exchange FTX.

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The company announced on Twitter that they have suspended withdrawals and normal business operations due to the lack of clarity around the current status of FTX.

“We are shocked and dismayed by the news regarding FTX and Alameda,” BlockFi said late Thursday on its Twitter account, becoming the latest casualty of the sudden fall of Sam Bankman-Fried’s FTX. Alameda Research is an affiliated trading firm also controlled by Bankman-Fried.

BlockFi, which is currently caught in a financial conundrum, was once worth $3 million.

The company took to Twitter to announce that platform activity will be limited for the time being and withdrawals for clients will be suspended “as is allowed under our terms.”

BlockFi has not announced any exact time frame for service restoration.

However, the crypto lender announced through Twitter that ACH deposits and “wire transactions scheduled for 11/11 will not process until 11/14.”

In July, the embattled crypto lender suffered a liquidity crisis after steep declines in crypto prices, which engulfed many lenders.

The crypto lender had brokered a $680 million deal with FTX.US, which included a $400 million revolving credit facility and an option for FTX to buy BlockFi.

While in June, the crypto lender had sought to raise money at a reduced valuation of about $1 billion, a $2 billion decrease from its original valuation of $3 billion in March 2021.

Crypto lenders have had a bad year due to the crypto market downturn. Additionally, the collapse of the TerraUSD stablecoin in May was a catalyst that caused the domino effect. It led to the implosion of other crypto lenders such as Celsius Networks and hedge fund Three Arrows Capital.

BlockFi suffered an $80 million hit from the bad debt of Three Arrows.

FTX has witnessed a sudden collapse this week after the crypto exchange was swamped by client withdrawal requests over the weekend.

According to The Wall Street Journal, FTX’s financial crisis has driven the company into near insolvency as it had lent billions of dollars in customer assets to fund risky trading bets by Alameda. It set the scene for FTX’s implosion.

Furthermore, the downfall of FTX has also affected other major crypto firms, such as Crypto.com, who has suspended deposits and withdrawals of two stablecoins, USDC and USDT, on the Solana blockchain on Wednesday.

Bankman-Fried has informed investors that the crypto exchange would need to file for bankruptcy if it fails to procure a cash injection, according to Bloomberg, who received this information from a person with direct knowledge of the matter.

Bankman-Fried – who was once worth $26 billion – also informed them that his crypto exchange faces a shortfall of up to $8 billion and is in need of $4 billion to remain solvent.

Bankman-Fried, until recently, had been buying up crypto firms struggling due to a credit crunch caused by the sudden collapse of the cryptocurrencies Luna and UST or TerraUSD.

FTX is now on a mission to raise rescue financing in the form of debt, equity or a combination of both, the person familiar with the matter informed Bloomberg.

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Tether Eliminates All Commercial Paper Holdings to Zero

by Blockchain News

Tether Limited Inc., the company behind USDT stablecoin, announced on Thursday that it has reduced its commercial paper holdings to zero, replacing them with U.S. Treasury bills.

Commercial paper is a short-term, unsecured debt issued by companies, whereby the value of the paper depends on the issuing company. Commercial papers are normally considered less reliable or less stable than other debt instruments like U.S. Treasury bonds.

On Thursday, Tether disclosed that it has now eliminated all commercial paper from its reserves. The firm said it has cut down more than $30 billion of commercial paper without any losses and increased its direct exposure to U.S. Treasuries by more than $10 billion in the last quarter.

The USDT stablecoin issuer said the move is part of the company’s “ongoing efforts to increase transparency” and back its tokens with “the most secure reserves in the market” — in hopes to ensure investor protection. “Reducing commercial papers to zero demonstrates Tether’s commitment to backing its tokens with the most secure reserves in the market,” Tether tweeted on Thursday.

The tweet noted that zeroing out the balance of its commercial paper holdings was not only made to be a step toward greater transparency and trust for the company but also for the entire stablecoin industry.

Currently, there are about 68.4 billion tether tokens in circulation, meaning that USDT has a market capitalization of $68.4 billion.

Earlier this month, as reported by Blockchain.News, Tether reported that it reduced its commercial paper holdings to less than $50 million. As of September 30, the firm announced that it increased its U.S. Treasury holdings to 58.1% of its total portfolio from 43.5% of its total portfolio as of June 30.

In the past, the company said that it would cut down its commercial paper holdings to zero by the end of the year due to rising concerns over the stability of the Tether ecosystem and its stablecoin, USDT.

Last year, New York regulators fined a multimillion-dollar against firm over concerns associated with the composition of its reserves. Since then, Tether has been committed to improving the quality of its reserves, in part by eliminating the amount of commercial paper it holds.

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Over 12,000 Brazilan Firms Hold Crypto, Says Local Tax Authority

by Blockchain News

Brazil registered a hike in records of companies and institutions claiming to hold some cryptocurrencies, according to a recent report from the Brazilian Tax Authority (RFB).

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The report showed that more than 12,000 companies in Brazil admit to holding cryptocurrencies as part of their revenues. This is an increase compared to the 11,360 companies confirmed in July.

Although, the number of individuals confirmed to own some cryptocurrencies in the same month declined by 35,000. 

The  adoption rates are still very much at the top, given that more than 1.3 million people registered.

Notably, this information was obtained from the mandatory monthly report from the RFB on the ownership of cryptocurrencies which gives a brief look at how the market is going so far.

Furthermore, the report also revealed that most significant volumes are moved using the dollar-pegged stablecoin issued by Tether, USDT.

Over $1.4 billion was moved using USDT covering 79,836 operations in August, with an average amount of almost $18,000 per transaction.

However, comparing the number of transactions executed in the same period, Bitcoin surpassed tether’s USDT, with more than 2.1 million transactions made using BTC.

Nevertheless, one thing worth noting is that the aggregated money involved was much less, holding out with an average amount of about  $130 per transaction.

In addition, not only USDT and BTC were being adopted. BRZ, the first Brazilian real-pegged stablecoin, ETH, and USDC – another dollar-pegged stablecoin, also registered unprecedented levels of movement.

While the cause for the crypto adoption in Brazil might be due to the issue the country’s economy is facing, which has made dollar-pegged stablecoins and digital assets appealing.

One positive way of looking at it is that it could at least push foreign crypto companies to the region. On Friday, crypto exchange platform FTX announced its partnership with Visa Inc. to continue expanding the rollouts of its crypto debit cards to 40 countries, including a number of Latin America.

Additionally, in August, a US-based leading provider of crypto solutions for businesses, Ripple, announced the launch of its crypto on-demand liquidity (ODL) in Brazil.

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Tether Boosts US Treasury Holdings Behind USDT, Further Reducing Commercial Paper

by Blockchain News

Tether, the crypto firm behind USDT stablecoin, on Monday, announced that it has increased its holding of U.S. Treasuries to 58.1% of its total portfolio while reducing its commercial paper holding to less than $50 million. Tether Chief Technology Officer Paolo Ardoino revealed the matter via Twitter social media.

Mr. Ardoino disclosed that on September 30, Tether increased its U.S. Treasury bill holdings to now account for 58.1% of stablecoin issuer Tether’s reserves – that is an increase of 14% from the previous standing. As of June 30, the company’s U.S. Treasuries stood at 43.5% of its total portfolio.

In July, Tether clarified that it “holds no Chinese commercial paper” and said its total commercial paper exposure had been cut to $3.7 billion from $20.1 billion as of May this year. During that time, Tether said that it would completely rid itself of commercial paper backing for its U.S.-dollar stablecoin USDT by the end of the year, as part of a plan to reduce exposure to riskier assets.

Its statement came as a response to the ongoing FUD around Tether, with some reports alleging that Tether’s commercial paper portfolio was 85% backed by Chinese or Asian commercial papers. Tether refuted such reports, stating that such allegations were completely false.

Stablecoins were under increased scrutiny after the collapse of the TerraUSD token in May. Usually underpinned by reserves of assets such as the U.S. dollar, gold, and government debt, stablecoins are widely used in crypto trading. Tether’s reserves consist of commercial paper (short-term debt issued by companies) and U.S. Treasury bonds.

Since the fourth quarter of 2021, Tether has been committed to reducing its holdings of commercial debt in its reserves, as the crypto firm continues facing questions about what its digital currency is actually backed by.

There has been controversy over claims made by Tether and its reserves. Last year, Tether disclosed that it held some cash but also purchased a large amount of commercial paper, which is short-term corporate debt. This raised concerns given that Tether does not disclose which companies it holds commercial paper from, and where those entities are based.

Last year, the U.S. Commodity Futures Trading Commission (CFTC) fined Tether $41 million for “making untrue or misleading statements” that its USDT stablecoin was backed 100% by corresponding fiat currencies. Last month, a New York judge ordered Tether to provide evidence of the USDT backing of its reserves.

The crypto firm aims to cut its commercial paper holdings to zero, as part of efforts to address concerns about the quality of assets underpinning its stablecoin amid the crypto market meltdown. In July, Tether revealed it hired accountancy firm BDO Italia to certify its reserves and that it would aim to release monthly reports by the end of the year.

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