Crypto Stablecoin Report 16: The connection between stablecoins and real assets
Original link: https://bihu.com/article/1315944646
Original publish time: September 1, 2020
Original author: HaiBo Jiang, researcher of MYKEY Lab
We released MYKEY Crypto Stablecoin Report to share our interpretation of the development status of stablecoins and analysis of their development trends to help the participants in the crypto market stay updated on the development status of stablecoin. The MYKEY Crypto Stablecoin Report will be published every week, looking forward to maintaining communication with the industry and exploring the development prospects of stablecoin together.
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- Last week, the market capitalization of major stablecoins has increased by $601 million to $16,556 million.
- Tether additionally issued 450 million USDT on Tron twice.
- On August 29, China Construction Bank briefly opened its digital currency wallet business to the public.
- The digital currency wallet of CCB supports features such as digital RMB bank card recharge, transfer, QR code receipt and payment, NFC one-touch payment, and cancellation.
- MakerDAO stated that there had been applications from companies in the fields of treasury bonds, real estate, gold and commodity indexes, and supply chain finance to use assets as collateral for DAI.
- Aave applied for an Electronic Money Institution license from the Financial Services Authority of the United Kingdom in 2018, which was approved in July this year. Aave will continue to apply for other licenses.
- Tether additionally issued 10 million USDT on EOS on August 29 due to the increased DeFi activity on EOS.
1. Overview of Stablecoin Data
First, let’s review the changes in the basic information of the various stablecoins in the past week(August 22, 2020 ~ August 28, 2020, same below).
Market Circulation
Source: MYKEY, CoinMarketCap, Coin Metrics
At present, the market circulation of major stablecoins has increased by $601 million to $16,556 million.
Source: MYKEY, Coin Metrics
In the past week, Tether additionally issued 450 million USDT on Tron twice. The circulation of USDC, PAX, TUSD, HUSD, DAI, and GUSD increased by 86.48 million, 17.97 million, 3.01 million, 1.24 million, 15.06 million, and 1.28 million, and the circulation of BUSD decreased by 980,000.
The Number of Holding Addresses
Source: MYKEY, DeBank
Last week, the number of main stablecoin holding addresses on Ethereum all decreased by 10,1991.
Source: MYKEY, DeBank
The number of holding addresses of TUSD and DAI increased by 645, and 3,860. The number of holding addresses of USDT, USDC and PAX decreased by 88,075, 18,249 and 172.
The Number of Active Addresses
Source: MYKEY, Coin Metrics
The number of active addresses of stablecoins last week increased by an average of 4.75% compared to the previous week.
The Number of 24-hour Transactions on the Public Blockchains
Source: MYKEY, Coin Metrics
Compared with the previous week, the number of daily transactions of major stablecoins increased by an average of 3.13%.
The Number of 24-hour Volume of Transactions on the Public Blockchains
Source: MYKEY, Coin Metrics
Source: MYKEY, Coin Metrics
The daily volume of transactions of major stablecoins last week decreased by an average of 6.85% from the previous week.
2. The connection between stablecoins and real assets
On August 29, China Construction Bank briefly opened its digital currency wallet business to the public. Through the ‘digital currency’ feature in the China Construction Bank App, you can use the digital RMB, which is China’s CBDC. The wallet of CCB supports features such as digital RMB bank card recharge, transfer, QR code receipt and payment, NFC one-touch payment, and cancellation. Since CBDC is equivalent to legal currency and cannot be rejected, and Alipay and WeChat may also access digital RMB in the future. CBDC is also a kind of stablecoin. It is foreseeable that CBDC 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 this year, MakerDAO has added USDC, WBTC, etc. as collateral. Last week MakerDAO stated that in the next 1–3 years, the focus of Maker will be on introducing physical assets as collateral for DAI. There have been applications from companies in the fields of treasury bonds, real estate, gold and commodity indexes, and supply chain finance to use assets as collateral for DAI. Companies and assets being applied for include:
- Real estate mortgage company New Silver implements asset tokenization using Centrifuge protocol (NS-DROP).
- The trust company Paxos issued the ERC20 gold token PAX GOLD on Ethereum (PAXG).
- Arca issued digital securities on Ethereum in the form of ARCoin (corresponding to 1-year, 2–10 year, and 10-year US government bonds).
- Supply chain finance company Harbor uses the Centrifuge protocol to initiate asset tokenization (HTC-DROP).
- WiV Technology launched Tokenized Wine Commodity Index Fund on Ethereum (WiV).
The above is only being applied for as part of the collateral for DAI. Without the introduction of real assets, now DAI has 443 million in circulation, and the market capitalization of MKR has reached $676 million.
Aave is a decentralized lending protocol, managed by AaveDAO. As early as 2018, Aave applied for an Electronic Money Institution license from the Financial Services Authority of the United Kingdom, and it was finally approved recently. This allows Aave to get the same as Coinbase and Revolut in Europe, which can issue electronic currency substitutes and provide payment services. Aave users can buy stablecoins and other assets in the Aave ecosystem through legal currency. Stani Kulechov, the founder of Aave, stated 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, supporting 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 real estate. One token represents the ownership of the real estate, and the other is a stablecoin anchored in legal currency generated by rental income.
As a global payment company, VISA is committed to providing the greatest value to individuals, businesses, and economies. Digital currency provides an opportunity for VISA to continue to expand its service range. Nowadays, the digital currency (stablecoin) backed by legal currency combines the stability of digital currency with currencies such as the U.S. dollar to become a promising new payment method. The concept of stablecoins has gradually attracted attention outside the financial technology field, including financial institutions and central banks. Consumers and businesses are also using digital currencies, leading to rapid growth in the circulation of digital currencies. VISA cooperates with the regulated and approved digital currency platforms Coinbase and Fold, etc., to provide services to the blockchain for the existing 61 million merchants. More than 25 digital currency wallets have been connected to VISA, which provides users with an easy way to use VISA debit or prepaid cards to spend from their digital currency balances wherever VISA is accepted. VISA has been committed to cooperating with global policymakers and organizations to help everyone better understand digital currencies.
According to the twitter tweeted by Sygnum on August 27, Galaxus, the largest online retailer in Switzerland, started using Sygnum Bank’s stablecoin Digital Swiss Franc (DCHF) to complete e-commerce payments. DCHF was launched in March 2020 and is anchored to the Swiss franc. Sygnum claims to be the first licensed bank in Switzerland to issue stablecoins. The bank holds a digital asset banking license from the Swiss FINMA.
The use of stablecoins outside the cryptocurrency market is a trend. Not only companies in the blockchain industry are actively attracting external capital to join, but also traditional financial institutions. It is foreseeable that stablecoins will enter our daily lives in the future.
Tips
To better communicate with industry insiders, we decided to add two sections for questions of readers and opinions of guests. If readers have questions about stablecoins, please contact us. We will pick meaningful questions to answer in the next issue. At the same time, welcome guests from the industry to share your views on stablecoins. Contact information: jianghb@mykey.org.
This is what we’re sharing in this MYKEY Crypto Stablecoin Report, welcome to stay tuned for follow-up crypto stablecoin reports. We will provide more interpretations of the development status of stablecoins and analysis of their development trends to help you stay updated on the development status of stablecoin in the follow-up report.
PS: MYKEY Lab has the final right to interpret the content of the article, please indicate the source for the quotation. Welcome to follow our official account — MYKEY Lab: MYKEY Smart Wallet.
Past review
MYKEY Crypto Stablecoin Report 03: Where are the users of DAI?
Crypto Stablecoin Report 07: Security Analysis of Stablecoins
Crypto Stablecoin Report 08: Interpretation of Digital Dollar Project
Crypto Stablecoin Report 09: Analyze the lending leverage of Compound
Crypto Stablecoin Report 10: Introduce the Algorithmic Stablecoin Project Terra (Luna)
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