Latest Stablecoin News and Insights | Yellow.com

The stablecoin market is on a roll. It's grown for ten straight months. In July, it hit $164 billion. That's a 2.11% jump, according to CCData. Tether's still the big dog. It grew 1.61% to $116 billion. That's an all-time high. It's been climbing for eleven months straight. DefiLlama says Tether owns nearly 70% of the market. USDC, the runner-up, is making moves. Its trading volume shot up 48.1% to $135 billion in July. Why? New EU rules and more market funds. The EU's crypto law, MiCA, kicked in last month. It's shaking things up. USDC was ready. It ticked all the boxes. Traders loved that. PayPal's stablecoin is the dark horse. It surged 17.9% to $589 million. That's its highest ever. Not bad for the new kid on the block. But it's not all sunshine and rainbows. Overall stablecoin trading dropped 8.35% to $795 billion. Centralized exchanges are struggling. MiCA's causing headaches for some. Tether's future in Europe? It's up in the air. The new rules are tough. Stablecoin issuers need an EU base. They need to file paperwork. Big players face even stricter rules. USDC and EURC jumped through the hoops. They're compliant. Traders trust them more now. It's paying off. The stablecoin landscape is changing fast. Compliance is key now. It's adapt or die in the EU market. Despite the hurdles, the market's growing. Spot Ethereum ETFs and Bitcoin 2024 Conference vibes are helping. The crypto world never sleeps, does it?

Stablecoins are having a moment. Their market cap hit $164 billion in July. That's the highest since April 2022. It's a 2.1% bump from June. Circle's USDC is the star of the show. Its trading volume on centralized exchanges reached a whopping $135 billion by July 25. That's a 48% jump. Not too shabby. USDC's market cap also rose 5.4% to $33.6 billion. What's behind this surge? Two things: market inflows and new EU rules. On July 1, the EU's Markets in Crypto-Assets (MiCA) framework kicked in. Circle was quick off the mark. They became the first stablecoin issuer to get the regulatory green light in Europe. Tether, the big dog in the stablecoin world, grew too. But slower. Its market cap hit $114 billion, up 1.6% in July. That's 11 months of growth in a row. Pretty solid. Tether's still top dog, though. DefiLlama says it's got nearly 70% of the stablecoin market. And get this – Tether reported record profits of $5.2 billion in the first half of 2024. Not too shabby. But it's not all rosy. Trading volume on centralized exchanges dropped 8.4% to $795 billion by July 25. That's the fourth month in a row it's gone down. Bit of a bummer. The new EU rules are shaking things up. Some crypto exchanges in Europe delisted stablecoins before the June 30 deadline. Talk about a last-minute scramble. The new rules are pretty strict. Stablecoin issuers need to be based in the EU. They've got to notify authorities and submit a white paper for approval. Big stablecoins face even tougher rules. Tether's CEO, Paolo Ardoino, isn't thrilled. He said in May, "Very few banks accept this type of business in Europe. It's already very difficult to get just one!" Sounds like a headache.

Jingdong Coinlink Technology Hong Kong Limited is making waves. The JD Technology Group subsidiary has announced plans to issue a Hong Kong dollar stablecoin. It's a big deal. The more stablecoins pegged to local currencies we have, the more people around the globe will eventually use crypto, and DeFi will be closer to financial world domination. The stablecoin will be pegged 1:1 to the HKD. The company aims to offer secure and cost-effective payment solutions. They're treading carefully, though. The Hong Kong Monetary Authority (HKMA) lists Jingdong Coinlink as a Sandbox Participant. But there's a catch. This doesn't mean they're licensed to issue stablecoins yet. Jingdong Coinlink has big plans for their stablecoin. They want to issue it on the blockchain. The goal? Efficient, cheap, and secure payments for businesses. The company is playing it safe with reserves. They'll use "highly liquid, highly trusted assets" stored in licensed financial institutions. Regulatory compliance is a top priority. Jingdong Coinlink promises to work with global authorities. They're keen to follow all current and future rules. This move fits a broader trend in Hong Kong. The city is warming up to crypto. It's a dramatic shift from previous policies. Just last week, CSOP Asset Management made headlines. They launched Asia's first Bitcoin futures inverse product in Hong Kong. It's a big step for the market. But it's not all smooth sailing. Some exchanges are jumping ship. HKX recently withdrew its license application. They're not alone. In fact, 12 crypto exchanges have pulled out of Hong Kong recently. A 13th had its application returned. It's a mixed bag for Hong Kong's crypto scene. The crypto landscape in Hong Kong is changing fast. Jingdong Coinlink's stablecoin plan is just the latest twist. It's anyone's guess what'll happen next.

Europol, the EU's law enforcement agency, claims that criminal cases involving Bitcoin are now on par with those involving altcoins. This sounds surprising, given the widespread belief that Bitcoin is utterly dominating the crypto market. Yet, it is time to say goodbye to the old prejudices. Altcoins are on the rise, whether you like it or not. Criminal world has spoken. This revelation comes from Europol latest Internet Organised Crime Threat Assessment (IOCTA). The report, released on Monday, highlights a surge in crypto use for illegal activities. Altcoins, in particular, are gaining traction among criminals. Ransomware attackers still prefer Bitcoin for payoffs. It's easier to get hold of than other tokens. But some crooks are branching out. They're now demanding payments in coins like Monero. Europol tweeted about the report's findings. "In 2023, millions of victims across the EU were attacked and exploited online on a daily basis," they said. The crypto market's evolution is opening new doors for scammers. Europol warns that the growing number of crypto ETFs could be ripe for exploitation. Investment fraudsters are getting savvy. They're increasingly converting Bitcoin to stablecoins like Tether's USDT. Why? Stablecoins are less of a rollercoaster ride when it comes to price. Investigators have noticed something interesting about Tether. It's popping up more on the Tron blockchain than Ethereum. The likely reason? Lower transaction fees on Tron. Non-compliant services continue to be a thorn in the side of crypto investigators. Some companies are playing ball with law enforcement. But offshore services? They're still a headache, often leading to drawn-out legal procedures. Crypto laundering got a facelift in 2023. Swapping services are all the rage among criminals now. They're using these to cover their tracks, swapping to privacy coins for anonymity and stablecoins for stability. Last month, Europol raised another red flag. Crypto mining could be a new frontier for money laundering. Criminals can use it to hide dirty money and even turn a profit. The BitClub Network case is a prime example. It showed how mining pools can fuel Ponzi schemes, robbing victims of hundreds of millions of euros.

The stablecoin market cap has recently flipped positive. This could be bullish for Bitcoin. CryptoQuant's CEO, Ki Young Ju, highlighted this trend on X. The stablecoin market cap just hit a new all-time high. USDT's 30-day change had turned negative earlier. But it didn't stay down for long. The metric has now edged back into positive territory. It's a small increase, but it could signal a turnaround. Historically, rising stablecoin market caps have been good for Bitcoin. Ju's chart shows this pattern over the past year. Why do stablecoins matter for Bitcoin? It's all about their role in the market. Investors use these tokens to park cash. They avoid crypto volatility but stay ready to jump back in. So, stablecoin market cap can show potential Bitcoin buying power. When it goes up, there's more dry powder for BTC and others. This Tether uptick comes as Bitcoin itself is rallying. It suggests fresh capital inflows, not just rotation from BTC. That's a potent combo. It means there's capital waiting on the sidelines and direct inflows into Bitcoin. Tether now makes up about 70% of the total stablecoin market cap. That's a big chunk of the pie. The total stablecoin market cap has hit a new record. It's a sign of renewed investor interest. What's next? Keep an eye on these trends. They could signal more upside for Bitcoin and the broader crypto market. Remember, though: crypto's a wild ride. Don't bet the farm on any one indicator.