Stablecoin, Yield and Custody News for Week of August 21st, 2022.

Biggest story of the past week is the fallout of two recent stablecoins facing issues with their currency peg. First, this past week saw further developments around the fallout of aUSD, a stablecoin issued by Acala in the Polkadot ecosystem. On Monday, Acala released a notice stating that the community behind Acala has voted to burn 2.97m worth of Acala USD (aUSD) stablecoins. Acala’s aUSD faced currency depeg issues when an exploit was identified and used to mint many extra coins erroneously, causing the aUSD price to drop by over 99%.

In another turn of events, the Huobi-supported and fiat-backed HUSD has since regained the currency peg that was seen to have been lost last week. Stable Universal, the team behind HUSD, made a tweet on Friday stating that the value drop was connected to several account closures that included a number of market maker accounts. HUSD also saw its market cap rise back to $160m after dropping as low as $136m.

More news from this week:

• Stablecoin issuers now hold more US debt than Berkshire Hathaway
• Morgan Stanley said that the tightening of the crypto market has paused
• Leaked FTX documents seem to show that the firm grew nearly 1000% in the crypto boom
• Decentralized Stablecoin FEI might be shutting down soon
• Tether’s USDT fell by $16b in the second quarter of 2022
• Uniswap sensored 253 crypto addresses that were blacklisted for various sanctions
• BTC dropped the most it has dropped in two months last week
• According to the Genesis Market Color Newsletter for August 22nd, the major assets have continued to meander across a tight range and no apparent direction

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