Stablecoin, Yield and Custody News for Week of July 17th, 2022.

Biggest story of this week is the continued push for transparency for stablecoin issuers amid broader market issues. Last week, Circle released a report stating that it is now fully backed by cash and US treasuries. This report from Circle (which is not yet audited) is another move from a major stablecoin issuer aiming to provide more transparency about their operations, after Paxos made a similar report on their reserves. A main takeaway from this report is Circle no longer holds any of its assets in commercial papers, a type of short term unsecured debt, which was previously as much as 9% of their total holdings. This announcement is an important move for Circle to become more transparent, as it eyes a public listing in Q4 of this year.

More news from this week:

• There’s a chance congress may rebuff regulators who wanted stablecoins to be exclusively issued and managed by banks
• The US Treasury is also open to nonbanks issuing stablecoins, according to key officials
• Stablecoin regulation is ramping up around the world, as new BIS guidelines from Europe’s Central Bank are released
• Russia debuts a palladium-backed stablecoin
• Almost $250m in stablecoins flowed out of Coinbase as the community refutes the exchanges liquidity issues
• G20 nations are affirming the need for cross-border coordination for stablecoin regulation
• Fintech company Blackfridge is releasing a stablecoin tied to the British pound called Poundtoken
• AAVE price faced a major correction after increasing 100% in a month
• A Cardano DEX saw a 54,000% rise in TVL as Cardano recorded modest DeFi inflows
• Crypto’s market cap regains $1t as ETH announces merge date
• Congress and Wall Street are still awaiting more action from the SEC amid the recent meltdowns, stating that Gensler ‘has to act soon’
• According to the Genesis Market Color Newsletter for July 18th, the ETH merge narrative being back resulted in signs of greater conviction in stand-alone longs, as opposed to the market-neutral expressions that were a common theme just a few weeks ago

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