Stablecoins are Dominating Crypto Talk

VYSYN Ventures Weekly Insight #85: Fed researchers debate stablecoins for payments as Zuckerberg’s Diem ends

Mark Zuckerberg’s stablecoin dream officially over

Diem, one of the most ambitious digital asset projects that attempted to introduce a global stablecoin, officially shut down earlier last week. Backed by Mark Zuckerberg’s Meta, the stablecoin project struggled getting regulators on its side.

US Fed Researchers offer conflicting opinions on stablecoins

After witnessing the impressive growth of the stablecoin market in recent times, regulators have become eager to establish frameworks for regulating stablecoins. A group of researchers at the Federal Reserve Bank of New York published a study that dubbed stablecoins “safe haven” assets. They opined that this form of digital assets can bring some sort of stability similar to traditional safe-haven assets.

Are Stablecoins the future of digital payments?

Due to the rapidly growing popularity of the stablecoin space, several fiat-pegged token projects have been launched. The growth of the stablecoins market has been nothing short of phenomenal, having gone from under $1 billion four years ago to a whopping $178 billion market. Out of this figure, more than two-thirds make up the top two stablecoins, Tether (USDT) and USD Coin (USDC), with $77.97 billion and $51.57 market caps respectively. Stablecoins have their perks as they are less volatile, backed by fixed assets, and promote cross-border payments.

About VYSYN Ventures

VYSYN Ventures is a longstanding venture capital company that specializes in funding and supporting disruptive startups in the blockchain and cryptocurrency industry. We have provided early-stage support to several projects that have grown USD market capitalizations of hundreds of millions and even billions. Our incubation program focuses on providing capital allocation, versatile marketing support, and tech assistance.

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VYSYN VENTURES

VYSYN VENTURES is a premiere venture capital firm focused exclusively on blockchain technology and the digital currency ecosystem. www.vysyn.io / hello@vysyn.io