BlackRock is quietly backing a new USD rival

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This was a big week for stablecoins. Expect an explosion of activity in the coming months. And: crypto has its hero back: CZ is free.

Let’s dive in ??

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• The Big Bang of Stablecoins. By 0XJMG. Link (video)
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?? Crypto & Macro

All Bets on Stablecoins

BlackRock is quietly backing a new USD rival that could shake up the $170B stablecoin market:

• Ethena Labs’ new stablecoin, UStb, is a fund that invests in US Treasury securities, with BlackRock’s BUIDL fund as a key backer.
• The launch was facilitated by Securitize.
• UStb joins Ethena’s synthetic stablecoin USDe, which uses collateralized debt and arbitrage to maintain its 1:1 dollar peg.
• Ethena Labs intends to integrate UStb into various centralized exchanges.

Why it matters: The stablecoin market is led by Tether’s USDT (75% market share; 120B market cap). BlackRock’s entry could increase competition and drive greater institutional adoption of stablecoins, shaking up the current landscape.

Another stablecoin? Yes.

Recently, Robinhood, Revolut, Anzens, SG Forge, PayPal and Ripple have entered the stablecoin race, tapping into $170B stablecoin market.

By the numbers: 90% of stablecoin transactions are executed by proprietary traders, hedge funds, and market makers—mainly to balance liquidity across platforms.

Regulation: The U.S. is developing a regulatory framework for stablecoins, while Europe has already implemented stringent regulations under the MiCA legislation.

Devil’s advocate: Even with BlackRock’s muscle, stablecoin projects aren’t immune to hurdles. JPMorgan Chase, Meta, and Binance have faced regulatory scrutiny and operational challenges in launching their stablecoins.

Punchline: BlackRock's entry into the stablecoin market is a significant step towards the broader vision of tokenizing traditional assets, potentially unlocking a $16t market.

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More Crypto Highlights:

• SG Forge is launching its MiCA-compliant euro stablecoin, EUR CoinVertible(EURCV), on Solana to leverage the blockchain’s speed and efficiency. This follows limited adoption on Ethereum and builds on Solana's growing appeal after PayPal’s PYUSD success. Link
• SEC Chair Gary Gensler emphasized this week that Bitcoin is not a security, reinforcing the SEC’s stance. Link
• Folks Finance launched xLending, a cross-chain lending market on Ethereum, Avalanche, and Base solving liquidity fragmentation. Link

???Regulation Highlights

• Japan's review of crypto regulations could lead to the introduction of crypto ETFs. Link

??Artificial Intelligence

Orion: A New Lens on Reality??

Meta just made a bold move at Meta Connect 2024, unveiling Orion, its most advanced AR glasses to date (formerly known as Project Nazare).

This isn’t just another tech gadget—it’s Meta’s play to bring Augmented Reality (AR) into the mainstream, making it as essential as your smartphone

Meta’s goal? To embed AR into everyday life—from how we work and shop to how we engage with brands and each other.

But there’s a catch.

?? Read full story

More AI Highlights:

• Mira Murati, former CTO of OpenAI, announced her departure after six and a half years. Her exit follows a series of high-profile departures. Link
• Meta Platforms has decided not to join the European Union's voluntary AI Pact as it focuses on compliance with the forthcoming AI Act, which mandates companies to disclose data used for training AI models. The AI Act, set to take effect in 2026, is part of a broader EU regulatory framework alongside other significant legislation. Link
• ...

That’s all for now, folks.

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The next edition on Web3 Consumer & Gaming will follow on Friday.

Talk soon,

– Marc & Team