Crypto-Friendly Robinhood Reportedly Considering Issuing A Native Stablecoin
Stablecoins are already big business. Investors and traders worldwide hold over $155 billion worth of Tethers USDT, Circles USDC, and other U.S. dollar-pegged tokens, and the volumes keep growing.
Now, crypto-friendly stock trading platform Robinhood is said to be joining the likes of Ripple and Revolut with its stablecoin.
Robinhood Eyes Foray Into The Stablecoin Market
According to a Sept. 26 report from Bloomberg citing anonymous sources, Robinhood is considering launching a stablecoin as part of its expanding crypto product suite.
Without refuting the possibility, a Robinhood representative reportedly indicated there are no imminent plans to release a stablecoin. The company currently allows trading in multiple digital assets on its app, including Circles USDC.
Bloomberg also reported Thursday that UK fintech giant Revolut is eyeing entering the stablecoin arena, which ZyCrypto recently covered. A spokesperson for Revolut said the company intends to further grow its crypto offerings, although they did not specify whether a stablecoin would be part of those plans.
The highly lucrative stablecoin industry, dominated by Tethers USDT with a market value of around $119.3 billion, has witnessed an increasing crop of new entrants. Last year, payments behemoth PayPal began issuing a stablecoin, with blockchain firms Ripple seeking to join in the coming weeks, and BitGo recently announced a planned launch at Token2049 in Singapore.
Upcoming MiCA Regulation To Reshape Stablecoin Landscape
The European Unions forthcoming Market in Crypto Assets (MiCA) Regulations, the worlds first comprehensive legal framework for crypto-assets, could have significant implications for the stablecoin sector.
Set to take full effect on December 30, 2024, MiCA will apply stricter rules for stablecoins, requiring stablecoin issuers to acquire electronic money licenses and implement legally binding stabilization mechanisms to guarantee adequate backing with good liquidity to inculcate customer confidence. Stablecoins will also be limited to a daily transaction volume of $200 million for payments, under MiCA.
Revoluts potential foray into the stablecoin space could challenge Tethers dominance as the company aims to navigate the new regulations.
Tether CEO Paolo Ardoino has previously condemned the EU regulations, highlighting a requirement that 60% of stablecoin reserves be held in cash deposits at several banks.
Very few banks accept this type of business in Europe. Its already very difficult to get just one!, Ardoino posited. He clarified that Tether does not plan to be regulated under the MiCA framework.
Circle, meanwhile, has already secured the prerequisite EU license, placing itself favorably as regulations tighten.
Read more: https://zycrypto.com/crypto-friendly-robinhood-reportedly-considering-issuing-a-native-stablecoin/
Text source: ZyCrypto
