SS #13 - Bank of England Boss Warns Banks Against Issuing Stablecoins

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Welcome to our 13th edition of the StableScope. A new 2x a week, stablecoin-focused newsletter from Launchy. Given the growth of the vertical, there's an increasing demand for more recurring reporting and curation on stablecoins.

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In Today's Edition:

• Headline: Bank of England Boss Warns Banks Against Issuing Stablecoins

• Quick Bites: USDT Sunset on 5 Legacy Blockchains

• Yield of the Week: 22% APY on Usual

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HEADLINE

Bank of England Boss Warns Banks Against Issuing Stablecoins

State of play: Bank of England Governor Andrew Bailey warned major banks against issuing their own stablecoins, arguing they threaten financial stability and urging a focus on tokenized deposits instead.

• Bailey opposes private stablecoins, favoring tokenized versions of traditional bank deposits for digital payments.

• He cautioned investors about Bitcoin, calling it a risky asset that doesn’t function as money.

• His comments come as the US and EU move toward stablecoin and CBDC regulation, while the UK signals a stricter stance.

What’s Next: Expect the UK to push for tougher stablecoin regulations and promote tokenized deposits, while global regulatory approaches to digital assets continue to diverge.

Why it Matters: Bailey’s stance could shape UK and global policy, impacting how banks and fintechs approach digital money and influencing the future of stablecoins and tokenized assets.

Our Take: The UK’s preference for tokenized deposits over stablecoins may slow private sector innovation but could offer more stability. Banks and crypto firms should prepare for stricter UK oversight and consider aligning with tokenized deposit models.

QUICK BITES

• Tether to sunset USDT on five legacy blockchains.

• Czech Central Bank buys $18M in Coinbase stock in Q2.

• House gears up for crypto market structure vote on Wednesday.

• OKX joins Global Dollar Network, integrates Paxos-issued USDG stablecoin.

YIELD OF THE WEEK

Euler sUSDf / USDC on Frontier Falcon: 15.03% - 77.92% in sUSDf

• Euler enables leveraging sUSDf as collateral, borrowing USDC up to 9.98x to maximize yield.

• With a max LTV of 90%, the liquidity in this pool is up to $2.23M.

• sDAI is a yield-bearing token in the Falcon Finance ecosystem that represents USDf and the other half of Falcon's dual token system.

Usual Syrup Vault: 10% APY in USDD0++

• Usual Syrup Vault or uSYRUP++ Vault is designed to provide USD0++ holders with direct exposure to syrupUSDC, enhancing returns while ensuring that USD0++ remains actively productive. The vault operates on Lagoon’s open infrastructure, with 9Summits serving as the curator.

• The yield from the vault comprises three reward types: USUAL Yield, distributed as USUAL tokens claimable daily; syrupUSDC yield, generated from lending USDC to institutional borrowers; and "Drips," which are loyalty incentives convertible into SYRUP tokens, further increasing overall returns.

• Users can redeem their USD0++ from the vault at any time, with withdrawals processed in USD0++ and queued for the next curator settlement (~48 hours). A base fee of up to 4% and a 20% performance fee are applied .

Usual TAC Vault: 22% APY in USDD0++

• Usual Tac Vault or uTAC++ vault offers USD0++ holders exposure to exclusive TAC rewards while ensuring their USD0++ remains actively productive. The tokens represent shares in a vault that operates on Lagoon’s infrastructure, curated by 9Summits.

• The uTAC++ vault provides holders with a combination of steady USUAL yield and access to TAC rewards, with the potential for additional incentives following the TAC launch. Importantly, no fees are applied, allowing for sustained exposure to USD0++ and continued USUAL rewards.

• TAC is a Layer 1 blockchain within the TON (The Open Network) ecosystem, equipped with a native EVM adapter that enables seamless operation of Ethereum-compatible smart contracts and dApps.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.