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Stablecoin News for the week ending Wednesday 10th August.

Here is our pick of the 3 most important stablecoin stories during the week.

Are Stablecoins signalling the next bull run!

Are we at the bottom and going forward there are reasonable prospects of some upside?  Maybe stablecoins are a useful signal?

The circulating supply of Tether [USDT] and USD Coin [USDC] has seen a dramatic decrease since May 2022.  But there has been an uptick in the back half of July.

Tether supply starts to increase after three-month decline (cointelegraph.com)

 

In the July edition of its Global Cryptocurrencies and Digital Assets report, the Bank of America concluded that the recent rise in crypto outflows from exchanges and a rise in stablecoin net inflows hint at a ‘bullish’ market momentum.

The interesting thing about the diagram below is that with the Crypto fall there was a bifurcation.  Large holders liquidated Crypto and stood on the sidelines in stablecoins, while small holders liquidated more of everything.  Now we are seeing both cohorts buying back into stablecoins.  Are they convinced the market has bottomed and now represents a buying opportunity?

 USDT and USDC accumulation surge can point towards a… – AMBCrypto

And for our final story and really the biggest of the week, Coinbase is partnering with BlackRock, the world’s largest asset manager, to provide institutional clients of Aladdin®, BlackRock’s end-to-end investment management platform, with direct access to crypto, starting with bitcoin, through connectivity with Coinbase Prime. Coinbase Prime will provide crypto trading, custody, prime brokerage, and reporting capabilities to Aladdin’s Institutional client base who are also clients of Coinbase.

Aladdin is used internally by Blackrock and externally as a white label solution to many other asset managers as well.

Coinbase selected by BlackRock; provide Aladdin clients access to crypto trading and custody via Coinbase Prime | by Coinbase | Aug, 2022 | The Coinbase Blog

So in summary, this week we saw some signs in the market that the bottom has been reached and that there is some potential for modest upside going forward along with a significant announcement that will enable institutional interest to access this exciting market.

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Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.  

Twitter @Alan_SmartMoney

We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.

For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives. 

 

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