Monday, November 28, 2022

FTX Plans to Launch Own Stablecoin in The Future

FTX Chief Executive Officer Sam Bankman-Fried declared the intentions of the exchange to launch its stablecoin in the near future. In an interview with The Big Whale, the FTX boss said “it is very likely” FTX will create a stablecoin. He explained that while the crypto exchange knows how to develop a stablecoin, it is searching for an appropriate partner.

Bankman-Fried said “We certainly could. We know how to do it. We’ve held off on doing it because, we think to some extent, collaboration on that could be really powerful,” he continued “Right now, the regulatory oversight of [stablecoins] is extremely unclear, it’s extremely messy and there are a lot of cooks hovering around the kitchen, but there’s no head chef.”

The use of stablecoin across many jurisdictions is gaining eminence above some digital asset classes including Central Bank Digital Currencies (CBDCs). In the United Kingdom, Her Majesty’s Treasury has been mulling plans to regulate stablecoins, especially after the fall of TerraUSD.

FTX Boss Debunks Robinhood Acquisition Talks

Sam Bankman-Fried’s FTX will not be the first crypto exchange in the industry to launch or own its native stablecoin. Leading digital assets provider Binance already launched its Binance USD (BUSD) in collaboration with financial institution and technology company Paxos. Coinbase also partnered with Circle to launch a stablecoin USD Coin (USDC).

However, FTX allows customers to use a long list of United States dollar-pegged stablecoins as collateral for its margin trading. Some of the permitted stablecoins are trueUSD (TUSD), USDC, Pax dollar (USDP), HUSD, and BUSD.

While the crypto exchange is still considering the launch of its stablecoin, SBF says for now FTX has another focus. He mentioned that the firm is currently dealing with the Commodity Futures Trading Commission (CFTC) on some of its products. Ultimately, FTX’s focus at present is to offer the best possible trading platform accessible to all.

His interviewer did not fail to ask him about talks of his intention to buy out Robinhood. In response, he clarified that the acquisition of Robinhood is good business but not the current direction of the firm.

Previously, Bankman-Fried bought a 7.6% stake in the retail investing app Robinhood. At the time of purchase, the 56.28 million Robinhood shares were worth $648.29 million.

 

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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