Tether reaches all-time high, Winklevoss twins eye new territory in UAE, EU study calls for crypto assets to be classified as securities and more
Tether Surpasses All-Time Market Cap High and Continues to Lead the Stablecoin Market
In a remarkable comeback, Tether, the company behind the leading stablecoin Tether, has surpassed its previous all-time high market cap of $83.2 billion, a value it lost during the 2022 cryptocurrency crash.
> The resurgence reflects the growing demand for stable digital currency and Tether’s commitment to providing financial freedom globally.
> Paolo Ardoino, Chief Technology Officer of Tether, expressed his confidence in the significance of this milestone, stating, “Today’s numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it.
> Tether tokens offer a safe harbor for the unbanked and allow people in emerging markets to keep their buying power, even when their national currency is being devalued.
> We are eager to continue expanding access to financial freedom globally. Full report here.
Winklevoss Twins Eye UAE Expansion
Tyler and Cameron Winklevoss, billionaire twins and founders of the Gemini crypto exchange, are turning their gaze to the United Arab Emirates (UAE) as they plan to seek a digital-asset license in the country.
> The move, unveiled in a recent Gemini Twitter announcement, marks the initial step in extending their crypto services to customers within the UAE and beyond.
> This also underscores Gemini’s efforts to expand its global presence.
> “Gemini’s application signifies our determination to offer a robust, secure, and user-friendly crypto platform to our customers in the UAE and beyond,” the exchange said, highlighting the global aspirations of the company. More here.
A new study, commissioned by the European Parliament, advocates for a shift in the regulatory approach towards crypto assets, suggesting they should be classified as securities by default.
> This recommendation, released on Tuesday, also pushes for the provision of legal status to decentralized finance (DeFi) governing bodies, referred to as autonomous organizations.
> The study emerges as the European Union (EU) is wrapping up its Markets in Crypto Assets (MiCA) regulation.
> The EU is also contemplating the need for additional legislation to address other aspects such as DeFi, staking, and non-fungible tokens (NFTs).
> “Unless proven otherwise by a national regulator, all crypto assets should be recognized as transferable securities,” suggests the report. Details here.
First Digital Launches FDUSD
A New Stablecoin Shaping Crypto in Asia
First Digital, a Hong Kong-based trust company, and authorized custodian, has announced the introduction of its new U.S. dollar-pegged stablecoin, which will be governed by regulations in Asia.
> The stablecoin, named “First Digital USD” or FDUSD, is planned to be fully backed by U.S. dollars or assets of equal fair value, according to the company’s statement.
> The company noted that the reserves backing the stablecoin would be maintained in segregated accounts at various institutions located within Asia.
> Apart from maintaining its value stability, FDUSD is designed to be programmable, enabling the implementation of financial contracts, insurance, and escrow services without the need for intermediaries, stated First Digital. Full report here.
Sui Blockchain’s Groundbreaking Partnership with Oracle Red Bull Racing in Formula One
Sui, a recently launched blockchain, has secured a multiyear partnership with Formula One’s Oracle Red Bull Racing team, marking its most significant collaboration since its inception less than a month ago.
> This partnership isn’t Oracle Red Bull Racing’s maiden venture into the world of digital currencies.
> The racing team had previously inked a $150 million agreement with Bybit, a derivatives exchange, last year.
> As a result of this new alliance with Sui, racing enthusiasts can expect an array of digital experiences in the coming months. Details here.
Global Watchdog Flags Qatar’s Crypto Ban Enforcement
Qatar, despite substantial progress in its combat against money laundering and terrorism financing, is being urged to improve its criminal justice response, especially in relation to terrorist financing, says the Financial Action Task Force (FATF).
> The Gulf state, known for its wealth and primarily expatriate workforce, has low domestic crime rates. Yet, the country is exposed to risks of money laundering from smuggling, fraud, drug crimes, and corruption.
> In addition, Qatar’s citizens have become targets for fundraising efforts related to terrorism domestically and internationally.
> The recent joint assessment by FATF and the Middle East & North Africa Financial Action Task Force (MENAFATF) noted that although Qatar demonstrates a comprehensive understanding of the money laundering and terrorist financing risks it faces, the nation needs to increase its grasp of more complex forms of these illicit activities. More here.
Chainalysis Acquires Transpose
Circle Announces Launch of Native USDC on Arbitrum
Leading financial technology firm Circle announced the launch of its USD Coin (USDC) on the Arbitrum platform, expected on June 8.
> The introduction of USDC, a well-known stablecoin pegged to the US dollar, to the Arbitrum ecosystem is seen as a significant move in the industry.
> In this new arrangement, USDC issued by Circle will be recognized as the official version within the Arbitrum ecosystem.
> This addition is expected to gradually replace the currently circulating Ethereum-bridged USDC, improving liquidity over time.
> The launch also includes plans for future support from the Cross-Chain Transfer Protocol (CCTP), which promises to eliminate delays associated with bridge withdrawals. Continue here
Bitcoin and Ether Navigate Market Downturn as June Begins
Bitcoin and Ether Navigate Market Downturn as June Begins
> Crypto markets experienced a slight downturn as June commenced, continuing the dreary sentiment of the previous month.
> Bitcoin, the crypto heavyweight, traded around $26,950, marking a 0.5% drop over the past day and marking the second successive day with a value under $27,000.
> This sluggish start to June perpetuates May’s bearish trend, during which Bitcoin’s price slumped nearly 4%, disrupting a four-month bull run.
> Bitcoin had experienced a remarkable rally of over 60% since January, peaking around $31,000 in mid-April. This surge was propelled by growing concerns around the stability of traditional finance, triggered by a series of U.S. bank failures, re-establishing crypto as a reliable financial refuge.
> Ether, holding the second position in terms of market cap, was hovering around $1,870, registering a minor increase from the previous day.
> Despite most leading digital assets exhibiting a slight downturn, Litecoin managed to defy the trend, surging by over 7%.
> This optimism among investors seems to stem from the upcoming halving event for the Litecoin network and an increase in network activity in May.
