SS #25 - ECB Eyes Public Blockchains for Faster Digital Euro Rollout

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Welcome to our 25th 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: ECB Considers Public Blockchains as Digital Euro Plans Accelerate

• Quick Bites: South Korea’s Top Banks Said to Meet Tether, Circle on Stablecoin Partnerships

• Yield of the Week: 95.12% APY on Euler

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HEADLINE

ECB Considers Public Blockchains as Digital Euro Plans Accelerate

State of play: EU policymakers are accelerating discussions on a digital euro after the U.S. passed a landmark stablecoin law, sparking concerns about America’s growing dominance in digital finance.

• The U.S. GENIUS Act establishes a regulatory framework for the $288 billion stablecoin sector, reinforcing dollar-pegged tokens like USDT and USDC.

• The ECB is now considering launching a digital euro on public blockchains such as Ethereum or Solana, moving away from its previous private infrastructure approach.

• Europe faces competitive pressure as the U.S., China, and the U.K. push forward with digital currency initiatives, raising fears of euro deposits flowing into dollar assets.

What’s Next: Expect the European Central Bank to fast-track its digital euro roadmap, possibly prioritizing interoperability with public blockchain networks to match U.S. and Chinese progress. Public consultations and pilot programs may accelerate, with a formal launch strategy likely to emerge within the next two years.

Why it Matters: This shift highlights a pivotal moment in the global race for digital currency dominance. A blockchain-enabled euro could reshape cross-border transactions, enhance monetary sovereignty, and offer an alternative to dollar-centric payment rails.

Our Take: Europe’s openness to public blockchains is a major shift that could boost institutional confidence in decentralized networks like Ethereum. While this creates opportunities for innovation, the EU must balance decentralization with control and address privacy and scalability to remain competitive globally.

QUICK BITES

• Haycen secures stablecoin issuance license in Bermuda.

• Citi executive warns stablecoin yields could drain bank deposits.

• Coinbase, Circle, Strategy, Mara lead crypto stock post-rally sell-off.

• Plasma’s XPL token trades above $4.5B fully diluted valuation in pre-markets.

• South Korea’s Top Banks said to meet Tether, Circle on stablecoin partnerships.

• World Liberty perpetuals' debut implies $40B FDV ahead of first unlock on Sept. 1.

• Gemini targets XRP army with new credit card, expands Ripple USD use for U.S. customers.

YIELD OF THE WEEK

Euler RLUSD/USDT on Euler Prime: 11.57% - 95.12% APY

• Euler enables leveraging RLUSD as collateral, borrowing USDT up to 14.27x to maximize yield.

• With a max LTV of 93%, the liquidity in this pool is up to $4.59M.

• Users can either borrow USDT against RLUSD collateral or utilize leverage to long RLUSD and short USDT.

Euler USDC/USDT on Euler Prime: 10.54% - 80.41% APY

• Euler enables leveraging USDC as collateral, borrowing USDT up to 14.27x to maximize yield.

• With a max LTV of 93%, the liquidity in this pool is up to $4.59M.

• Users can either borrow USDT against USDC collateral or utilize leverage to long USDC and short USDT.

Midas mRe7YIELD: 18.85% APY

• Midas has launched mMEV in collaboration with MEV Capital, offering multi-chain stablecoin yield strategies focused on market-neutral DeFi opportunities.

• The strategy is designed to provide exposure to structured yield opportunities across various blockchain ecosystems.

• mMEV maintains strong liquidity with instant redemption for major stablecoins, supported by a policy to keep at least 10% of supply available per chain.

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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.