Encrypted Stablecoin Report: Stablecoins Out of Ethereum, Global Stablecoins Trigger Regulatory Awakening

Original title: "Encrypted Stablecoin Report: Stablecoin Out of Ethereum, Global Stablecoin Triggers Regulatory Awakening"

Original Source: MYKEY Lab

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-The circulating market value of major stablecoins reaches 22.13 billion US dollar, an increase of 1.51 billion US dollars in the past month.

-In the past month, the circulation of USDT, USDC, BUSD, and DAI increased by 299 million, 306 million, 301 million, and 26 million respectively; TUSD decreased by 194 million.

-USDC is out of Ethereum and has been deployed on Algorand and Solana with a supply of over $30M.

- BUSD continues to grow on Binance Smart Chain.

-Stablecoins have attracted the attention of global regulators, and the European Commission, the Financial Stability Board, and the Monetary Fund have issued regulatory frameworks or reports respectively.

1. Overview of Stablecoin Data

In the past During the month (September 26, 2020 to October 25, 2020, the same below, the data report for the natural month will be provided from next month), the basic information of each stablecoin has undergone tremendous changes.

Market circulation

Source: MYKEY, CoinMarketCap, Coin Metrics

At present, the circulation market value of major stablecoins has reached 22.13 billion US dollars, nearly one Monthly increase of 1.510 billion US dollars.

Source: MYKEY, Coin Metrics

In the past month, Tether issued an additional 299 million USDT on the Ethereum chain. The circulation of USDC increased by 306 million, the circulation of BUSD increased by 301 million, the circulation of DAI increased by 25.6 million, and the circulation of TUSD decreased by 194 million. The circulation of PAX, HUSD, and GUSD increased by 74.89 million, 96.12 million, and 510,000 respectively.

Coin holding addresses

Source: MYKEY, DeBank

In the past month, the number of major stablecoin holding addresses in the Ethereum network is fell back, a total decrease of 215,000.

Source: MYKEY, DeBank

USDT holding address The number has dropped significantly, with a decrease of 253,000, and the number of USDC holding addresses has increased by 33,000. The number of other stablecoin holding addresses has not changed much.

Number of Active Addresses

Source: MYKEY, Coin Metrics

Last week, the average number of daily active addresses of major stablecoins increased from the previous week 6.55%.

24 hours on-chain transactions

Source: MYKEY, Coin Metrics

Compared to the previous month, the daily average number of transactions of major stablecoins increased by 11.83%.

24-hour chain transaction volume

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

The average daily transaction volume of major stablecoins has dropped by an average of 28.82% from the previous month.

Second, stablecoins go out of Ethereum

About 70% of stablecoins still choose Ethereum Square is the main issuance platform, and besides USDT, which chooses to issue on multiple chains, most stablecoins choose Ethereum as the only issuance platform. During the continuous congestion of Ethereum, in addition to the steady increase of USDT on Tron, stablecoins have also gradually left the Ethereum platform. USDC chose multiple smart contract platforms for deployment, while BUSD began to expand within its own ecosystem.

USDC has been deployed on Algorand/Solana

Centre alliance in September and October Announced several pieces of cooperation information, announcing that USDC assets will be deployed on Algorand, Stellar, and Solana. Among them, the supply on Algorand and Solana has reached 7.18 million US dollars and 25 million US dollars respectively, and the USDC on Stellar will be issued in the first quarter of 2021.

BUSD continues to grow on BSC

BUSD is a stablecoin asset issued by Binance, In addition to existing in the form of ERC-20 on Ethereum, it is also deployed on Binance Chain (BEP2) and Binance Smart Chain (BEP20). With the progress of mining on BSC, the number of BUSD holding addresses on BSC has exceeded 9,100, which is basically the same as the number of BUSD holding addresses on Ethereum. Since the cross-chain bridge of assets is provided by Binance Exchange, it is not easy to count the supply of BUSD on each chain, but according to bscscan, the supply of BUSD on BSC should have exceeded 40 million US dollars, of which the BUSD in Pancake The volume of BUSD exceeds 18 million USD.

3. Stablecoins attract global regulatory attention

As early as 2019, stablecoins attracted the attention of global regulators. The concept of "global stablecoin" was first formally proposed in the "Global Stablecoin Assessment Report" of the G7 Stablecoin Working Group in October 2019. "Global" mainly refers to the stablecoin spanning multiple jurisdictions. The Bank for International Settlements also released a report on strengthening cross-border payments in July 2020, proposing that central bank digital currencies and global stablecoins could provide potential boosts for cross-border payments.

The rapid growth of stablecoins in 2020 has attracted the attention of global regulators. The European Commission, the G20 Group Joint Financial Stability Committee, and the International Monetary Fund have successively released regulatory reports on stablecoins.

The European Commission announced the regulatory framework for encrypted assets and stable coins

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The European Commission announced the final draft of the regulatory framework for encrypted assets on September 24. The report is 168 pages long and elaborates on the background of this proposal and the development status of encrypted assets and regulatory proposals for stablecoins.

The report pointed out that although the size of the encrypted asset market is still small and does not currently pose a threat to financial stability, with the emergence of "global stablecoins", This situation may change. Because "global stablecoins" have stable value and seek wider adoption by leveraging the network effects created by companies promoting these assets. The European Commission will create a comprehensive and holistic EU "stablecoin" framework for crypto-assets not covered by existing EU financial services legislation, in order to mitigate the risks identified by the Financial Stability Board, in particular financial stability risks.

The plan still needs to be considered by the legislative counterparts of the European Commission, the European Parliament and the European Council.

G20 Group Joint Financial Stability Committee Releases Stablecoin Regulatory Report

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On October 23, the Financial Stability Board (FSB) released the report "Regulation, Supervision and Supervision of "Global Stablecoin" Arrangements", which is the "Global Stablecoin" (GSC) Regulation, supervision and oversight of arrangements made high-level recommendations.

The FSB noted that so-called "stablecoins" are a specific class of crypto-assets whose value is ) to address the high volatility of “traditional” crypto-assets, has the potential to improve the efficiency of financial service delivery, but at the same time may pose risks to financial stability, especially in the event of mass adoption. Stablecoins have the potential to improve payment efficiency and promote financial inclusion, but the use of "global stablecoins" (GSCs) could have huge implications for multinational justice.

The FSB was established after the G20 summit in 2009. It is officially entrusted by the G20 to provide observation reports and policy recommendations for the global financial system, sponsored and led by the Bank for International Settlements.

The Group of Twenty (G20) is working with the International Monetary Fund (IMF), the World Bank, and the Bank for International Settlements (BIS) to discuss the role of global stablecoins in The complexity of practice and technology, including design and interoperability, and assess the potential and challenges of central bank digital currency in cross-border payments. By the end of 2022, the G20 will complete a framework for regulating stablecoins and research on the design, technology and trials of central bank digital currencies with the IMF, World Bank and BIS (source).

International Monetary Fund released a report: central bank digital currency has potential, but cannot solve all problems< /span>

A report released by the International Monetary Fund (IMF) on October 16 stated that central bank digital currency (CBDC) may make those who wish to Countries that gain more control over their monetary policies benefit, but not all crises are resolved.

The IMF pointed out that new digital forms of money, including CBDC and global stable currency (GSC), have attracted regulatory attention, and that CBDC and GSC can reduce the Transaction costs, widening access to services and promoting financial inclusion through mobile devices. The cross-border use of digital currencies also poses risks and policy challenges. CBDC is not a panacea solution for countries with poor economies, it cannot save countries with high inflation or similar domestic problems.

The report finally concluded that CBDC has not yet qualitatively changed the global currency pattern, but it may intensify the effect of currency substitution and currency internationalization. However, if the GSC has the same unit of account as the existing currency, it may have monetary effects similar to CBDC, while potentially threatening financial stability. And if there is a new GSC with an independent accounting unit (such as a new currency with a basket of currencies as a reserve), it can also provide better financial services, but the impact on global currency and financial stability will be more far-reaching.

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