This Week Summary on Stablecoin News:
- Brazil’s Galipolo reports a surge in cryptocurrency adoption, with 90% of transaction volume linked to stablecoins.
- Bera Chain’s launch two weeks ago brought attention to its stablecoin, $HONEY.
- Fed’s Waller advocates for both banks and non-banks to have the ability to issue stablecoins.
- Peter Thiel and Paolo Ardoino support the development of a new blockchain-centered around USDt.
- Standard Chartered, Animoca Brands, and HKT collaborate to introduce an HKD-backed stablecoin.
- Stablecoin yields spiked last week due to decreased market trading volume.
Brazil’s Crypto Boom Driven by Stablecoins
Brazil has emerged as a key player in the global cryptocurrency market, with stablecoins at the forefront of its adoption. According to Gabriel Galipolo, the central bank chief, 90% of Brazil's crypto flow is tied to stablecoins. This surge is attributed to their use in cross-border payments, hedging against inflation, and facilitating international trade. Stablecoins offer Brazilians a reliable alternative amidst economic instability and a depreciating currency. Regulatory clarity is expected in 2025, which could further solidify their role in the country's financial ecosystem.
Berachain’s $HONEY Stablecoin Gains Spotlight
Berachain’s mainnet launch on February 6, 2025, introduced $HONEY, a stablecoin soft-pegged to the U.S. dollar. Designed for trading, lending, and borrowing within its ecosystem, $HONEY is backed by multiple collateral assets like USDC and PYUSD. Berachain’s innovative Proof-of-Liquidity (PoL) mechanism enhances capital efficiency by allowing users to stake tokens while providing liquidity. This unique model has positioned $HONEY as a pivotal asset within Berachain’s DeFi ecosystem.
Fed Governor Waller Advocates for Stablecoin Issuance by Banks and Non-Banks
Federal Reserve Governor Christopher Waller emphasized the importance of allowing banks and non-banks to issue stablecoins under a clear regulatory framework. Speaking at a conference on February 12, 2025, Waller highlighted stablecoins’ potential to expand the reach of the U.S. dollar and improve cross-border payments. He stressed that proper oversight is essential to ensure stability and usability while fostering innovation in the private sector.
Peter Thiel and Paolo Ardoino Back Tether-Focused Blockchain
Billionaire Peter Thiel and Tether CEO Paolo Ardoino have invested in Plasma, a blockchain designed specifically for Tether’s USDt stablecoin. The project raised $24 million to develop a Bitcoin-based network offering zero-fee USDt transactions. Plasma aims to enhance efficiency and scalability for stablecoin processing, positioning itself as a secure and cost-effective solution for global remittances and payments.
Standard Chartered Partners to Launch HKD Stablecoin
Standard Chartered has partnered with Animoca Brands and HKT to develop a stablecoin pegged to the Hong Kong dollar (HKD). This initiative promotes blockchain-based payment solutions within Hong Kong’s financial ecosystem. The project reflects a growing institutional interest in leveraging stablecoins for localized payment systems.
Stablecoin Yields Spike Amid Low Market Volume
Last week, we saw a notable increase in stablecoin yields due to reduced market trading volumes. Lower liquidity often drives higher returns for yield-bearing stablecoins as demand for decentralized finance (DeFi) lending grows. This is a reminder of how macroeconomic factors like liquidity shortages can influence yield rates significantly.
This Weekly Summary is prepared by brava.xyz.
About Brava:
Brava is an automated stablecoin yield management platform designed to simplify access to yield opportunities in decentralized finance (DeFi). By leveraging risk-adjusted strategies and automation, Brava empowers users to optimize their yield strategies while maintaining full control of their assets.
Disclaimer: Brava does not provide financial advice or guarantee investment performance. Users should assess their own financial circumstances and risk tolerance before using the platform. Brava operates in compliance with applicable regulations and does not man
Citations:
https://cointelegraph.com/news/fed-governor-waller-calls-framework-banks-issue-stablecoins
https://cointelegraph.com/news/peter-thiel-paolo-ardoino-back-usdt-focused-blockchain
https://worldfinancecouncil.org/news/brazil-crypto-boom-stablecoins-regulation-2025/
https://cryptotvplus.com/2025/02/feds-governor-wants-banks-non-banks-to-issue-stablecoins
https://www.kucoin.com/news/flash/plasma-raises-24m-to-launch-tether-focused-blockchain-in-q2-2025
https://docs.berachain.com/learn/pol/tokens/honey
