# Stablecoins Related Articles

Examining why Bitcoin was less volatile than Nvidia in 2025

According to a Bitwise analysis, Bitcoin exhibited lower volatility than Nvidia throughout 2025, signaling a new market phase. This shift is attributed to structural derisking driven by increased institutional access, regulatory oversight, and the significant influence of ETFs. These funds have broadened Bitcoin's investor base, smoothing out its historically extreme boom-bust cycles. ETFs now act as market whales, with their flows dictating risk sentiment. Bitwise predicts ETFs will purchase more than the entire new supply of Bitcoin, Ethereum, and Solana in 2026. The firm also expects crypto equities to outperform tech stocks, as evidenced by its Crypto Innovators 30 Index's 585% surge versus tech's 140% gain. At press time, Bitcoin traded near $88k, with price reactions appearing more controlled than in previous cycles.

ambcrypto12/19 08:07

The Catfish Effect? Stablecoins Are Truly the Enemy of Bank Deposits

The article challenges the prevailing narrative that stablecoins pose an existential threat to the traditional banking system by causing massive deposit outflows. Instead, it argues that stablecoins act as a competitive catalyst, forcing banks to improve efficiency and offer higher deposit rates, rather than replacing them. Key points include: - Research indicates no significant correlation between stablecoin growth and bank deposit outflows, highlighting the "sticky" nature of deposits due to the convenience of bundled banking services (e.g., mortgages, payroll). - Stablecoins introduce competition, compelling banks to enhance operational efficiency and customer benefits, ultimately expanding financial intermediation and consumer welfare. - Regulatory frameworks like the GENIUS法案 (likely referring to U.S. stablecoin legislation) mitigate risks by mandating full reserves (cash, short-term Treasuries) and enforceable redemption rights, addressing concerns about run and liquidity risks. - Stablecoins offer efficiency gains through atomic settlements, enabling instant, cross-border transactions without intermediary delays, which could modernize outdated financial infrastructure. - The U.S. is urged to lead in stablecoin innovation to preserve the dollar’s global dominance, transforming stablecoins from offshore novelties into transparent, regulated components of domestic financial systems. The conclusion emphasizes that banks should view stablecoins as an opportunity to evolve, similar to other industries disrupted by technology, rather than as a threat.

marsbit12/19 07:49

Pantera Partner: The Return of Professionalism and Rationality in Crypto VC, Where Is the Next Investment Hotspot?

Pantera Capital partners Paul Veradittakit and Franklin Bi discuss the current state and future trends of crypto venture capital. Despite a record $34 billion in total funding this year, deal volume has halved compared to 2021-2022, signaling a market shift toward professional, institutional capital focused on later-stage projects with rigorous due diligence. They attribute the previous "metaverse" and "altcoin" speculation frenzy to low interest rates and excess liquidity, which funded many unsustainable projects. The market is now rationalizing. Key developments include a clearer exit path via IPOs (e.g., Circle) and the emergence of Digital Asset Treasuries (DATs), which are actively managed vehicles for yield generation. DAT competition will hinge on execution and asset growth. Future investment themes include: - **Tokenization**: A multi-decade trend enabling programmable assets and new financial products, with stablecoins as a killer app. - **ZK-TLS (Zero-Knowledge TLS)**: Crucial for verifying off-chain data authenticity without exposing raw data, enabling new applications. - **Consumer/Prediction Markets**: Platforms like Polymarket offer democratized information discovery and entertainment. In a "bull or bear" segment: - **Stocks**: Divergent views on Robinhood (bullish for integration) vs. Coinbase (bullish for global institutional expansion). - **Payment Chains**: Skepticism about user lock-in vs. potential for optimized chains. - **Privacy**: Debate on whether it's a feature (bearish) or a investable vertical (bullish for enterprise solutions). Additional insights: - Token lockups should align investors and founders to ensure long-term commitment. - The "L1 war" isn't over; value capture mechanisms and user activity will determine winners.

marsbit12/19 07:39

Vaults, Yields, and the Illusion of Safety: The Real-World Benchmark

Vaults in crypto have evolved beyond simple yield farming tools into programmable portfolio wrappers, yet they remain dangerously misunderstood. While often marketed as yield-generating products, their economic essence is risk. This article reframes vaults as API-wrapped portfolios that embed various strategies—lending, leverage, credit underwriting—while obscuring the actual risks users assume: smart contract risk, counterparty risk, basis risk, and more. Historical data from traditional finance reveals a persistent risk-return ladder: cash/T-bills (~3.3%), investment-grade bonds (~4.5%), high-yield bonds (~7.8%), equities (~9.9%), and private equity/VC (12%+). These returns compensate for specific risks like credit default, liquidity, volatility, and complexity. DeFi’s focus on APY alone ignores this reality, encouraging riskier strategies to compete for yield, leading to systemic fragility (e.g., Stream, Elixir collapses). The solution is to adopt a risk-aware framework: categorize vaults by their risk profile (cash-like, credit, equity, etc.) and transparently communicate the sources of yield and associated risks. This shift is critical for both user protection and institutional adoption.

深潮12/19 02:59

Crypto has everything needed for a bull market, so why is the market down?

Despite numerous positive drivers such as increased liquidity, a pro-crypto U.S. government, ETF launches, and institutional buying, the crypto market is on track to end 2025 lower than it started. Analysts question why the market isn’t in a bull run, with some suggesting structural issues or excessive leverage are to blame. Selling pressure persists from long-term holders, technical traders, and cycle theorists. While some declare a bear market has already begun, others highlight strong fundamentals, including regulatory progress and institutional adoption, calling 2025 a foundational year for long-term growth.

cointelegraph12/19 02:42

Federal Reserve Withdraws Crypto Rules, Banks Get More Freedom

bitcoinist12/18 22:01

Coinbase appoints ex-UK finance minister George Osborne to chair advisory council

Coinbase, the largest US-based cryptocurrency exchange, has appointed former UK finance minister George Osborne as the chair of its advisory council. Osborne, who has been an advisor since 2024, views this as an opportunity to learn more about the blockchain revolution and its potential for broadening financial inclusion. His appointment is part of Coinbase's strategy to expand its global influence with foreign governments. Osborne has previously criticized the UK for lagging in crypto regulation and stablecoin development, warning that the British pound risks irrelevance against dominant US dollar-backed stablecoins. This move coincides with Coinbase's broader expansion, including recent acquisitions and new product offerings like tokenized stock trading, prediction markets, and planned perpetual futures contracts, as it aims to become a comprehensive financial services "everything app."

cointelegraph12/18 22:00

Global debt markets show dollar dominance moves in cycles, US Fed says

A new Federal Reserve discussion paper reveals that the U.S. dollar’s dominance in global debt markets has moved in cycles over the past 60 years, with no clear long-term trend toward either dollarization or de-dollarization. The study identifies three distinct "dollarization waves" since the 1960s, showing currency usage shifts are cyclical rather than structural. As of 2024, emerging markets still rely heavily on dollar-denominated debt, which makes up about 80% of their international bonds. Meanwhile, the rise of dollar-pegged stablecoins like USDT and USDC—which together represent 85% of the $309.6 billion stablecoin market—has reinforced dollar dominance. These stablecoins are backed significantly by U.S. Treasury holdings, making their issuers major holders of U.S. government debt. The report concludes that despite vulnerabilities, the dollar’s global role remains unchallenged due to a lack of alternatives. Efforts to internationalize other currencies, including the Chinese renminbi, have seen limited success. European policymakers have expressed concern over the growing influence of dollar-backed stablecoins.

cointelegraph12/18 21:38

Bitcoin Policy Institute reps sound alarm on de minimis tax exclusion

The Bitcoin Policy Institute (BPI) has raised concerns that proposed U.S. legislation for a de minimis tax exemption on small cryptocurrency transactions may exclude Bitcoin, applying only to stablecoins. BPI’s head of strategy, Conner Brown, called this a "severe mistake," arguing that such an exemption would encourage Bitcoin’s use as a medium of exchange, not just a store of value. The bill, introduced by Senator Cynthia Lummis, proposes exemptions for crypto transactions under $300, with a $5,000 annual cap, and includes provisions for charitable donations and deferred taxes on mining and staking rewards. Critics question the need for stablecoin exemptions since their value is stable. High transaction fees, block times, and tax implications currently limit Bitcoin’s use as everyday cash, though the Lightning Network offers a faster, cheaper payment solution.

cointelegraph12/18 19:07

Coinbase’s Latest: Prediction Markets And Stock Trading Added To Platform

Coinbase is expanding its platform to become a comprehensive financial application by adding stock trading, advanced trading tools, and prediction markets through a partnership with Kalshi. CEO Brian Armstrong stated that while only 1% of users trade prediction markets as an asset class, 99% use them for insights, similar to traditional media. The company is also launching "Coinbase Tokenize," an institutional-grade infrastructure to support the tokenization of real-world assets (RWAs), with the ultimate goal of facilitating global access to tokenized equities. Armstrong believes all major asset classes, including equities and real estate, will transition to blockchain systems. Additionally, Coinbase will offer custom stablecoins for businesses and expand its API services for institutional clients.

bitcoinist12/18 15:30