Stablecoin, Yield and Custody News for Week of October 23rd, 2022.

Biggest story of this week is a few developments from the popular crypto banking solution Silvergate on their continued plans to launch a stablecoin. Earlier this year, Silvergate announced that they were acquiring the Diem assets from Facebook, in an effort to aid Silvergate in solving some of the issues around retail distribution that they would face with their own stablecoin. This product has been ongoing for a while, with a continuous goal of launching some time in 2022. However, on an earnings call last week, Silvergate announced that they are falling short of that goal and that the stablecoin will not be launched in 2022. This news, along with their third quarter earnings miss, meant that their shares dropped about 20% in value. Moving forward, Silvergate claims that they plan to continue working towards the launch their stablecoin product, and will continue to grow out their core business of banking crypto clients and providing them a transactional platform through the Silvergate Exchange Network (SEN).

More news from this week:

• Binance’s stated plan of converting major stablecoin deposits into BUSD caused BUSD market share to rise to 15.48% from 10.01%
• Rishi Sunak, who is going to be appointed as the new UK Prime Minister after the resignation of Liz Truss, is notably quite crypto-friendly
• FDIC USD Chief says that stablecoins could ‘fundamentally alter’ the banking system
• Tether is making USDT available at 24,000 ATMs in Brazil
• Stablecoin demand has maintained pace while other crypto demands have tumbled
• Binance CEO CZ claimed that Binance is heavily investing into DeFi
• A draft of the ‘DeFi killing’ CFTC bill has been leaked
• The Bank of England says that DeFi ‘better implement good governance before it’s too late’
• a16z doesn’t support the plan to break up the DeFi giant MakerDAO
• Binance claims they are close to identifying the hacker behind their $570m attack
• According to the Genesis Market Color Newsletter for October 24th, crypto moved in line with S&P futures, rallying on Sunday before steadily retracting half its gains

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