Stablecoin Update | Tether's commercial paper reserves drop to 30%, Circle to apply for crypto banking charter
Recent developments in stablecoins include:
- The total market value of USDC on the Ethereum blockchain has surpassed USDT.
- Circle is preparing to submit an application for a U.S. crypto banking charter.
- Circle's USDC completed a $400 million financing round led by BlackRock and Fidelity.
- Tether USDT has committed to further reducing the percentage of commercial paper in its reserves.
- Tether has issued USDT on its tenth blockchain, Kusama, with a total circulation exceeding $80 billion.
Table of Contents
1. Tether Reducing Commercial Paper Holdings
Tether's CTO Paolo Ardoino stated in an interview with CNBC on 4/13 that the proportion of commercial paper in USDT reserves will continue to decrease, with an increase in government bonds.
According to the official document dated 12/31 link, out of the $78.6 billion reserves, the value of commercial paper is $24.1 billion, accounting for about 30%, which is a decrease from the 44% in the third quarter of the previous year.
However, Tether's official website still shows that over 40% of commercial paper holdings. Ardoino emphasized that Tether's efforts to increase transparency are ongoing and will continue.
2. Tether Issues USDT on Kusama
Tether announced on 4/13 that it has issued USDT on the Polkadot test network Kusama. This marks the tenth blockchain network supported by Tether, with USDT market cap at approximately $82.6 billion, ranking third after Ethereum.
#Tether USDt launches on Kusama pic.twitter.com/q1PHuYYScR
— Tether (@Tether_to) April 13, 2022
3. USDC Market Cap on Ethereum Surpasses USDT
According to CryptoRank and on-chain data, USDC has higher adoption on the Ethereum blockchain, with a market cap of $44.6 billion surpassing USDT's $39.8 billion.
4. Circle Completes $400 Million Funding
Circle announced on 4/12 the completion of a $400 million funding round led by BlackRock and Fidelity, according to the announcement. BlackRock, besides becoming a major manager of USDC cash reserves, will also establish a strategic partnership with Circle.
5. Circle Prepares to Submit US Crypto Bank Charter Application
During a Bitcoin summit in Miami, Circle CEO Jeremy Allaire mentioned in an interview that they are in negotiations with the U.S. Office of the Comptroller of the Currency (OCC) responsible for regulating bank charters, and plan to submit an application in the future.
Allaire did not disclose the timeline for the application, and OCC representatives declined to comment on discussions with Circle.
If approved, Circle will become the fourth federally chartered crypto bank in the United States, following Anchorage Digital, Protego Trust Bank NA, and Paxos Trust Company.