For years, banks have observed from the sidelines as Tether dominated the stablecoin market, reaping billions in profits. Now, these institutions are stepping in aggressively, eager to claim their share of this lucrative space.

The co-founder of Nasdaq-listed business intelligence firm MicroStrategy has sparked speculation of an additional bitcoin investment by the company with a recent post on social media in which he pointed to “disconcerting blue lines” on a website tracking the firm’s purchases.

Asset manager volatility Shares has filed for three new exchange-traded funds (ETFs) that would provide exposure to Solana futures contracts on exchanges regulated by the Commodity Futures Trading Commission (CFTC).

Top stories in the Crypto Roundup today:

• Banks Start Moving Into Stablecoin Sector
• MicroStrategy Co-Founder Teases Potential Additional Bitcoin Acquisition
• Volatility Shares Files for Solana Futures ETF

Banks Start Moving Into Stablecoin Sector

For years, banks have been watching from the sidelines Tether’s lead in the stablecoin market, and its billions in profits that came as a result. These institutions are now moving aggressively into the space, looking to get a slice of the stablecoin market.

A wave of activity is sweeping across the banking sector, particularly in Europe, where regulatory clarity and Tether’s retreat over the Markets in Crypto Assets (MiCA) legislation have created an opening for banks. Earlier this year Société Générale-Forge made its euro-backed stablecoin available to retail investors, while financial group Oddo BHF SCA, is also working on a EUR-backed stablecoin.

Other major market players, including Deutsche Bank-owned DWS and Revolut are actively considering issuing their own stablecoins. Banks in the United States are widely expected to move on the stablecoin sector as well once legislation clears the way.

SG-Forge is reportedly engaging with other banks interested in adopting its stablecoin or leveraging its technology through partnerships or white-labeling agreements. Meanwhile, payments giant Visa, which launched a tokenisation network in October, is collaborating with BBVA on a pilot set for next year.

The potential profit involved in launching a stablecoin is a significant driver of this trend. Paolo Ardoino, Tether’s Chief Executive Officer, has said the leading stablecoin issuer is projected to close the year with over $10 billion in net profit.

Risks remain, however, with a recent European Central Bank analysis suggesting that converting retail deposits into stablecoins could weaken a bank’s liquidity coverage ratio. In the United States, regulators must clarify reserve requirements and address the issue of deposit insurance for stablecoins.

MicroStrategy Co-Founder Teases Potential Additional Bitcoin Acquisition

The co-founder of Nasdaq-listed business intelligence firm MicroStrategy has sparked speculation of an additional bitcoin investment by the company with a recent post on social media in which he pointed to “disconcerting blue lines” on a website tracking the firm’s purchases.

Over the last few weeks, Saylor has made similar posts on Sundays foreshadowing MicroStrategy's bitcoin purchases, including last week after the firm acquired 5,200 BTC at an average price of $106,000 per coin. Saylor has repeatedly emphasized the company’s plan to accumulate BTC regardless of its price.

This month, the firm called for a special shareholders meeting to fund the purchase of additional BTC as part of its 21/21 plan, which stipulated the firm will raise $42 billion over the next three years between equity and fixed-income offerings to buy more bitcoin.

The company, according to BitcoinTreasuries, already holds 444,262 BTC worth around $41.6 billion, bought at an average price of $62,351 per coin.

Volatility Shares Files for Solana Futures ETF

Asset manager volatility Shares has filed for three new exchange-traded funds (ETFs) that would provide exposure to Solana futures contracts on exchanges regulated by the Commodity Futures Trading Commission (CFTC).

The filing is curious, as no such futures contracts currently exist on exchanges regulated by the CFTC, although the fund’s prospectus clarifies the contracts being traded on a CFTC-registered exchange is a requirement. The filing sparked considerable discussion on social media, with Bloomberg ETF analyst Eric Balchunas calling it “wild” and saying it’s a potential sign Solana futures are on the way.

ETF Store president Nate Geraci suggested that the filing could mean the “CFTC may be winning” its “power struggle” with the U.S. Securities and Exchange Commission (SEC) over digital asset regulations. Some in the cryptocurrency space believe a spot Solana ETF could be the next fund to be approved by the SEC, although others point to XRP ETFs.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.