The Hong Kong Chamber of Commerce has suggested creating a stablecoin that would be backed by the Chinese yuan, which would benefit companies engaging with mainland China and other Asian nations.
JPMorgan analysts have raised concerns about the growing dominance of Tether in the stablecoin market, despite the overall increase in market capitalization.
In the fourth quarter of 2023, Tether, the company behind the issuance of the stablecoin USDT, reported a record net profit of $2.9 billion.
The Tron blockchain project has responded to the recent findings of a group of UN experts who stated that the stablecoin USDT from Tether is being increasingly used for illegal financial activities.
There has been an uptick in cybercriminals utilizing stablecoins with fiat backing between 2022 and 2023.
According to a recent report by Binance Research, stablecoins issued by centralized companies and backed by real assets currently dominate the stablecoin market.
Fidelity predicts that institutions will once again become interested in DeFi products and stablecoins if traditional finance (TradFi) yields decrease due to the Federal Reserve’s policies.
