Mapping Out The Stablecoin Ecosystem

One of the biggest events in 2022 undoubtedly was the de-pegging of TerraUSD (UST) and the subsequent collapse of LUNA, wiping more than $40 billion out of its ecosystem. Inevitably, market players started expressing concern about other algorithmic and partially-backed stablecoins. In June, the Fed noted stablecoins among financial stability risks and it is expected that regulation of some form will follow.

Despite these concerns, stablecoin providers are continuing to launch new offers. For example, Circle and Tether have recently announced new additions to their stablecoin offerings. Circle introduced EUROC, a euro-backed stablecoin pegged to the value of one Euro and Tether is launching GBPT, a sterling pound-pegged stablecoin.