FTX to launch its own stablecoin soon, says Sam Bankman-Fried

abdelaziz Fathi

The stablecoin market is welcoming a new player soon. Crypto exchange FTX is reportedly working on its very own stablecoin, founder and CEO Sam Bankman-Fried said in a recent interview with The Big Whale .

Sam Bankman-Fried

The crypto billionaire, who has emerged as the savior of the digital asset industry, confirmed that it is very likely they will create a crypto token whose value is tied to another asset. He added that his exchange – which operates its native FTX token (FTT) – possesses the relevant ‘know-how’ to create one and is thinking about the best partner to work with.

“We know how to create a stablecoin. We’re just thinking about the best partner to do it with,” he said.

Stablecoins have been a core part of the growth story for crypto and DeFi, with US dollar-pegged stablecoins being the de facto reserve currency of crypto thus far. Also, demand for stablecoins in the e-commerce and payment space has been surging as the fiat-backed tokens allow users and merchants to avoid volatility. Moreover, online retailers and payment gateways benefited from faster, cheaper transactions as compared to credit cards and traditional payment systems.

This trend was driven by growing interest in decentralized finance (DeFi) and OTC desks that use the token to settle block trades over-the-counter.

FTX’s proposed stablecoin will go against other big crypto exchanges’ coins including major rivals, Binance’s BUSD and Circle’s USD Coin (USDC) stablecoin, which is backed by Coinbase, the largest cryptocurrency exchange in the US.

Bankman-Fried floats the idea just as FTX is reportedly in discussions with a clutch of heavyweights from traditional finance to raise up to $1 billion in fresh funding to fuel more deal-making.

The fresh capital injection, which is still subject to negotiations, would keep the crypto conglomerate at the same valuation it had landed after a $400 million funding round back in January. At the time, the cryptocurrency exchange founded by Sam Bankman-Fried was valued at $32 billion.

According to leaked financial documents, global trading revenue generated by FTX hit $1.02 billion in 2021, having increased more than 10 times from the $89 million recorded in 2020. Additionally, FTX’s operating income swallowed $272 million throughout last year’s bull run from $14 million a year earlier. FTX saw net income of $388 million last year, up from just $17 million in 2020.

By way of comparison, Coinbase posted a loss of $1.1 billion on revenue of $803 million for the second quarter of 2022. The results amounted to the second consecutive quarterly loss for the publicly traded exchange, which posted $7.4 billion in revenue and $3.6 billion of net income last year.

Read this next

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)

Opinion

Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.

Institutional FX

Finalto launches Prime of Prime offering on LSEG’s FX Matching venue

“By combining our expertise in Prime of Prime services with LSEG’s robust trading platform, we aim to empower clients with the tools and resources needed to navigate the FX market with confidence.”

Digital Assets

Tether’s USDT stablecoin nears 100 billion in circulating supply

USDT, the world’s largest stablecoin, has reached close to 100 billion in circulating supply, currently sitting at around 99.5 billion. Its market capitalization, which reached over $100 billion at one point, is calculated by multiplying the supply by the price.

Market News

5 Hot Stocks For March 2024

Entering March 2024 marks the beginning of the final stretch of the first quarter of the year, seemingly passing swiftly amidst market anticipation and global economic factors.

<