DTCC Considers Launching Stablecoin Amid Regulatory Clarity
DTCC, a key player in U.S. financial markets, is eyeing the stablecoin space. It might launch its own stablecoin if regulations become favorable.
Stablecoins are digital currencies tied to traditional assets like the U.S. dollar. They offer stability and are less volatile than other cryptocurrencies. DTCC is considering entering this market, as reported on June 12. The firm is waiting for the right regulatory environment before making a move.
Two bills, the GENIUS Act and the STABLE Act, are under review. These laws aim to ensure stablecoins are backed by real assets, providing clarity and legal protection.
DTCC’s interest in stablecoins reflects a broader trend. Major financial institutions and tech giants are exploring this space. Circle, a leading stablecoin issuer, recently went public with notable returns. This success has caught the attention of Visa, MasterCard, and jpmorgan, who are now considering their own stablecoin projects.
Big tech companies like Apple, X, Google, and Airbnb are also eyeing the stablecoin market. Ant International, a Chinese tech giant, has already taken steps by applying for licenses in Hong Kong, Singapore, and Luxembourg. The appeal lies in the revenue model: stablecoin issuers can invest in short-term Treasuries, generating significant profits. For instance, circle reported $3 billion in gross interest income.As regulatory frameworks solidify,more established players are likely to join the stablecoin rush.
