FTX could launch its own stablecoin via a partnership, says Bankman-Fried

Quick Take

  • FTX could launch its own stablecoin, CEO Sam Bankman-Fried told The Big Whale.
  • But the exchange giant will prefer launching a stablecoin via partnerships, according to Bankman-Fried.

Crypto exchange operator FTX could launch its own stablecoin through a partnership, CEO Sam Bankman-Fried told The Big Whale in an interview.

"We certainly could. We know how to do it," Bankman-Fried said when The Big Whale asked him if FTX will launch its own stablecoin. "We hold off on doing it because I think to some extent collaboration on that can be really powerful. And a lot of that ends with us trying to find the partners we'd be really excited to work with. But I think you'll probably be hearing something from us on that topic in the not-too-distant future."

While FTX is yet to decide its approach for a potential stablecoin launch, it won't be the first exchange to do so. Rival Binance launched its native stablecoin BUSD in September 2019 in partnership with Paxos. BUSD is currently the third-largest stablecoin in the market, after tether and USDC, with a total supply of around 22 billion, according to data compiled by The Block Research.

Last month, Binance started to prioritize BUSD over several others on its trading platform. The company announced a "BUSD Auto-Conversion" that converts users' existing balances and new deposits of USDC, USDP and TUSD stablecoins at a 1:1 ratio. Binance also ended trading pairs for the three stablecoins against BUSD and tether — as well as major cryptocurrencies like bitcoin and ether.

That move seems to be paying off Binance. The share of BUSD trading has increased on the platform, according to data compiled by The Block Research.

FTX did not immediately respond to The Block's request for comment.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

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