SS #8 - BIS Doesn't Like Stablecoins (Are we surprised?)

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Good Morning.

Welcome to our 8th 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: BIS Doesn’t Like Stablecoins

• Quick Bites: Sky Approved $1B Allocation

• Yield of the Week: 11.92% APY in USDC/USDT0 on Liminal

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HEADLINE

BIS Argues Stablecoins Fail ‘Three Key Tests’

State of play: The Bank for International Settlements (BIS) just dropped a bombshell report claiming stablecoins aren't money.

• The central bank for central banks says stablecoins fail 3 crucial tests: singleness, elasticity, and integrity.

• While acknowledging some benefits like programmability and faster cross-border payments, BIS warns about risks to monetary sovereignty and the potential for illicit activities.

• The news hit Circle hard, with its stock dropping 15% Tuesday after hitting an all-time high of $299 on Monday.

What’s Next: Despite its skepticism of stablecoins, BIS remains optimistic about tokenization's potential to transform payments and securities markets, suggesting we might see a push toward more regulated, centralized digital asset solutions.

Why it Matters: This isn't just another critical report; it's the most influential banking institution in the world drawing a line in the sand between traditional finance and stablecoins, potentially influencing future regulatory frameworks.

Our Take: While the BIS raises valid concerns, their stance might be too rigid given stablecoins’ growing real-world adoption.

QUICK BITES

• Attacker drains over $9M from Resupply.

• Kraken launches cross-border payments app.

• Dinari secures US license to offer tokenized stocks.

• Agora CEO pushes back at Anchorage’s stablecoin safety matrix.

• Sky approves $1B allocation for Janus Henderson's onchain fund.

• World Liberty Financial says it will make the WLFI token tradable.

• Privacy Pools adds stablecoin support for private Ethereum transfers.

• GF Securities launches offshore yuan-backed tokenized securities in HK.

• ETH-based stablecoin hits fresh all-time high with over 750K unique weekly users.

• South Korea's largest bank files stablecoin trademarks for upcoming banking consortium.

• Mastercard expands stablecoin push with Paxos, Fiserv, and PayPal integrations.

• SoFi plans to launch blockchain remittances with stablecoins as crypto returns to the platform.

• Tether CEO predicts one trillion AI agents will use Bitcoin and USDT for transactions within 15 years.

YIELD OF THE WEEK

Liminal: 11.92% APY in USDC/ USDT0

• Liminal is a protocol that offers stablecoin holders real, sustainable yield through delta-neutral strategies, leveraging funding fees from leveraged traders on Hyperliquid, rather than inflationary token incentives.

• A 10% performance fee is charged only on net funding gains, aligning the protocol's success with user earnings.

• Capital can be withdrawn anytime without lock-ups or exit fees, although market conditions may affect withdrawal timing. Deposit limits range from $500 to $250K, with a maximum user balance of $1M.

Gauntlet: 7.43% APY in USDC

• Gauntlet USD Alpha offers the best risk-adjusted stablecoin yield in DeFi, utilizing institutional-grade risk management from top quantitative experts.

• The vault allows anyone to supply USDC, built on Base and accessible via the Gauntlet App, with initial allocations to Morpho Labs vaults on Mainnet and Base.

• Rewards are auto-swapped to USDC and compounded.

Contango sLVLUSD / USDC on Morpho: 8.38% - 37.36% in USDC

• Contango enables leveraging slvlUSD as collateral, borrowing USDC up to 9.27x to maximize yield and earn up to 9.3x Contango Points and 27.8x Lent Points.

• Users can deposit various stablecoins, but the primary trading pair is slvlUSD/USDC, with a maximum investment of $2.5M.

• Currently, slvlUSD offers an APY of 8.38%.

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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.