Coinbases delivery of US dollar-based stablecoin, USD Coin (USDC) grew 250% since early 2020including an 80% expansion in the past two months.
After starting the year with a market cap of nearly $ 520 million USDC is now the 16th largest crypto asset with a capitalization of $ 1.86 billionand surpasses all other important stable coins, excluding Tether for $ 14.5 billion (USDT) for at least four times.
Meanwhile, other stablecoins too (most of which are tied to the $ 1 value) have seen significant growth this year, with DAI and Binance USD growing 970% and 800% respectively so far in 2020.
However, there is a race for stable consolidated tokens to bolster their market share before big financial institutions and corporations go into battle with their own token money.
On the 9th of September Fnality, A stablecoin project with 13 global banks led by the UBS Group, Predicted that it will get regulatory approval for its initiative ‘UtilitySettlement Coin’ for the second quarter of 2021.
The Fnality project has been in development for over five years and seeks to network with US dollars, Japanese yen, euros, Canadian dollars and British pounds.
Existing stable coins could also face stiff competition from the Facebook scales, despite early regulatory setbacks it seems to be slowly gaining favor with lawmakers.
In July, The U.S. office of the Comptroller of the Currency (OCC) gave banks permission to be authorized by the federal government to hold crypto assetsThis opened the door to wide acceptance of stablecoin.
Central bank digital currencies (CBDCs) are also emerging in China, the US and Europe and have the potential to one day eliminate the demand for stable coins. On September 10th, the President of the European Central Bank (ECB) Christine Lagarde, announced that the ECB will shortly pass a judgment on whether the region needs a digitized euro:
“So far, the Eurosystem has not made a decision about adopting a digital euro. But like many other central banks around the world, we are examining the benefits, risks and operational challenges that come with it.”
In May, Bank Frick, based in Liechtenstein, started accepting USDC deposits.