Author: MYKEY researcher Jiang Haibo

To help crypto market participants keep updated on the development status of stablecoins, we launched the MYKEY Stablecoin Report to share our interpretation of the development status of stablecoins and analysis of their development trends. Looking forward to maintaining exchanges with peers and jointly exploring the development prospects of stablecoins.

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• quick preview

• The market capitalization of major stablecoins reached $16.556 billion, an increase of $601 million compared to last week.

• Tether issued two additional tokens on Tron, totaling 450 million USDT.

• On August 29, China Construction Bank briefly opened its digital currency wallet business to the outside world.

• CCB's digital currency wallet supports digital RMB bank card recharge, transfer, QR code collection and payment, NFC touch payment, cancellation and other functions.

• MakerDAO stated that there have been applications from companies in the fields of national debt, real estate, gold and commodity indices, and supply chain finance to use assets as collateral for DAI.

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1. Overview of Stablecoin Data

1. Overview of Stablecoin Data

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Source: MYKEY, CoinMarketCap, Coin Metrics

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Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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Source: MYKEY, DeBank

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Source: MYKEY, DeBank

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Active addresses

Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

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Source: MYKEY, Coin Metrics

Source: MYKEY, Coin Metrics

The average daily transaction volume of major stablecoins decreased by an average of 6.85% from the previous week.

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2. The connection between stable currency and real assets

On August 29, China Construction Bank briefly opened its digital currency wallet business to the outside world. Through the "Digital Currency" function in the CCB App, the digital renminbi, which is China's central bank digital currency, can be used. CCB's wallet supports digital RMB bank card recharge, transfer, QR code collection and payment, NFC touch payment, cancellation and other functions. Since the central bank's digital currency is equivalent to legal currency and cannot be rejected, Alipay and WeChat may also access digital renminbi in the future. Central bank digital currency is also a type of stable currency. It is foreseeable that central bank figures will be used by many people as a supplementary payment method. In this report, we will introduce the connection between stablecoins and real assets.

Since the beginning of this year, MakerDAO has added USDC, WBTC, etc. as collateral. Last week, MakerDAO stated that Maker will focus on introducing physical assets as collateral for DAI in the next 1-3 years. Companies from the fields of treasury bonds, real estate, gold and commodity indices, and supply chain finance have already applied to use these assets as collateral for DAI. The companies and assets under application include:

Real estate mortgage company New Silver’s asset tokenization using Centrifuge Protocol (NS-DROP)

ERC20 gold token PAX GOLD (PAXG) issued by trust company Paxos on Ethereum

Arca’s digital securities issued on Ethereum in the form of ARCoin (corresponding to 1-year, 2-10-year and 10-year U.S. government bonds)

The asset tokenization (HTC-DROP) initiated by the supply chain finance company Harbor using the Centrifuge protocol

WiV Technology Launches Tokenized Wine Commodity Index Fund (WiV) on Ethereum

The above are just some of the applications that are being applied for as DAI collateral. Without the introduction of real assets, the current circulation of DAI has reached 443 million, and the market value of MKR has reached 676 million US dollars.

Aave is a decentralized lending protocol managed by AaveDAO. As early as 2018, Aave Limited, an entity of Aave in the UK, applied to the UK Financial Services Regulatory Authority for an Electronic Money Institution (Electronic Money Institution) license, and recently finally obtained the license. This allows Aave to issue e-money alternatives and provide payment services in the same way as Coinbase and Revolut in Europe. Aave users can purchase stablecoins and other assets in the Aave ecosystem with legal tender. Stani Kulechov, founder of Aave, said that Aave entities will continue to apply for other licenses to facilitate new users to join the Aave ecosystem.

Telos is a smart contract platform running on EOSIO that supports the creation of decentralized applications and decentralized autonomous organizations. At the end of August, Telos announced a partnership with Katalyo to tokenize $35 million worth of Croatian real estate. Katalyo will issue two tokens for each property, one token representing ownership of the property and the other a fiat-pegged stablecoin generated from rental income.

As a global payment company, VISA is committed to delivering maximum value to individuals, businesses and economies. Digital currency provides an opportunity for VISA to continue to expand its services. Today, fiat-backed digital currencies (stablecoins) combine digital currencies with the stability of currencies such as the U.S. dollar to become a promising new payment method. The concept of stablecoins is gradually attracting attention outside the fintech space, including financial institutions and central banks. Consumers and businesses are also using digital currencies, leading to rapid growth in digital currency circulation. VISA has partnered with regulatory-approved digital currency platforms such as Coinbase and Fold to provide existing 61 million merchants with blockchain-enabled services. More than 25 digital currency wallets are already connected to VISA, providing users with an easy way to spend from their digital currency balances using VISA debit or prepaid cards anywhere VISA is accepted. VISA has been working with global policy makers and organizations to help everyone better understand digital currencies.

Switzerland’s largest online retailer, Galaxus, has begun using Sygnum Bank’s stablecoin, Digital Swiss Franc (DCHF), to complete e-commerce payments, according to a tweet from Sygnum on Aug. 27. Launched in March 2020, DCHF is pegged to the Swiss franc. Sygnum claims to be the first licensed bank in Switzerland to issue a stablecoin, holding a digital asset banking license from the Swiss Financial Market Supervisory Authority (FINMA).