SS #9 - Circle Applies For US Trust Bank License

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Welcome to our 9th 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: Circle Applies For Trust Bank License

• Quick Bites: Two-thirds of Koreans want to invest more in crypto

• Yield of the Week: 60.07% APY in SDAI on Euler

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HEADLINE

Circle Applies For US Trust Bank License

State of play: Circle has applied for a national trust bank license in the US.

• Unlike traditional banks, the license would not allow Circle to take cash deposits or make loans.

• Circle's national trust bank entity would be called First National Digital Currency Bank, N.A.

• Crypto platform Anchorage Digital is currently the only digital asset company with a national trust bank charter.

What’s Next: If granted, Circle will be able to act as a custodian for its own USDC reserves.

Why it Matters: This will provide Circle with more revenue unlock, lower its dependency on BlackRock.

Our Take: Circle knows they have to vertically integrate (own distribution and reserves custody) to justify their valuations in the long run.

QUICK BITES

• Auro launches stablecoin on Aptos.

• Circle applies for a US banking license.

• ARK Invest sold $95M of Coibase shares.

• Bernstein sets $230 price target on Circle stock.

• Stablecoin startups surpass 2021 venture capital peak.

• Resupply proposes burning 6M tokens after $10M exploit.

• Bank of Korea pauses CBDC project as local stablecoin adoption picks up speed.

• Two-thirds of Koreans want to invest more in crypto as won-based stablecoin hype builds.

• World Liberty aims for stablecoin adoption growth on the Binance Chain with a new partnership.

YIELD OF THE WEEK

Harmonix Hype Delta Neutral Vault: 15.14% APY in USDC

• Harmonix offers a delta-neutral trading approach by converting a portion of user funds into HYPE and opening a hedged short HYPE-USD position to generate funding fees and mitigate price exposure.

• It offers 2x Harmonix points besides a 15.14% APY.

• A 10% performance fee is applied when a depositor withdraws funds in profit, and a 1% management fee is charged.

Spectra PT BOLD: 10.83% APY in BOLD

• Spectra offers a fixed rate with a maturity on December 10, 2025, and an APY of up to 10.83%.

• Users can deposit assets, including BOLD, sBOLD, ETH, wETH, USDC, GHO, and USR.

• Currently, there is ~$1.76M liquidity available.

Euler SDAI / RLUSD on Euler Yield: 11.06% - 60.07% in SDAI

• Euler enables leveraging SDAI as collateral, borrowing RLUSD up to 11.09x to maximize yield.

• With a max LTV of 91%, the liquidity in this pool is up to $19.33M.

• RLUSD is Ripple's new stablecoin, fully backed 1:1 by USD-denominated assets including cash, US Treasuries, and cash equivalents.

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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.