Rapid Insights: Latest Stablecoin Developments

Sam Bankman-Fried, CEO of FTX, recently divulged in an interview with The Big Whale that FTX was working on its own stablecoin. While the specifics of the stablecoin were not discussed, FTX currently supports a basket of stablecoins, such as USDT, USDC and TUSD. Deposits of most supported USD stablecoins (except USDT) are credited as a single asset, USD, on FTX.

FTX creating its own stablecoin will certainly invite scrutiny from regulators and competitors alike, with Binance following in FTX’s footsteps of melding multiple stablecoins into the umbrella of a single one for a better user experience. Given that Binance already has its own stablecoin, BUSD, which has seen a steady increase in trading volume over the past year, it should be well-positioned to contend with FTX’s eventual stablecoin.