Core Insights - Societe Generale's digital asset unit, SG-FORGE, has expanded its euro- and dollar-denominated stablecoins into decentralized finance (DeFi) by deploying them on Ethereum-based protocols Morpho and Uniswap [1][3][9] Group 1: DeFi Integration - The deployment allows EUR CoinVertible (EURCV) and USD CoinVertible (USDCV) to be used for borrowing, lending, and spot trading in a fully on-chain environment, marking a shift from SG-FORGE's previous focus on centralized platforms [3][6] - Users can now borrow or lend the bank-issued stablecoins against major cryptocurrencies such as Bitcoin and Ethereum, as well as tokenized money market funds regulated by the French Financial Markets Authority [4][5] Group 2: Market Position and Strategy - SG-FORGE's stablecoins currently have a market cap of $66 million for EURCV and $32 million for USDCV, indicating a growing interest from institutional players in integrating real-world assets into permissionless finance [7] - Societe Generale is among the few global banks actively issuing and deploying its own stablecoins, exploring their potential role within DeFi ecosystems while maintaining connections to regulated assets [8][9]

European Banking Authority stablecoin. Photo by BeInCrypto Europe’s largest exchange operator is moving to put stablecoins inside its market infrastructure. The step is designed to push the euro closer to relevance in digital finance. Deutsche Börse Group said it will work with Circle Internet Financial to deploy the issuer’s euro- and dollar-backed tokens under the EU’s new crypto rulebook. The initiative also follows recent pilots where Circle’s USDC and EURC were used by Visa to test faster cross-borde ...

“Stablecoins highlight a genuine need for payments that are faster, cheaper, round-the-clock and ‘programmable’,” writes @JeanTirole. The Nobel laureate argues that “public authorities can and should deliver this directly” https://t.co/ZyPvKlTtQ4 ...

RT tetheryoda (@chainyoda)This is defi summer and if you haven't used @Starknet in a bit, the alfa hidden in plain sight is is juicy yields and rewards available on a fast, cheap starknet for putting your bitcoin and stablecoins to work. Also the most secure, fast and cheap experience available on an L2 ...

🚀 Week in AI: Funding Flows & Stablecoins in a Red WeekAI mcap −6.7% (~$2.3B). Small caps pop. New USD stablecoin for agents. Fresh funding from crypto incumbents.Let’s unpack it. 🧵1/6 https://t.co/D77ufKd0xK ...

Industry Trend - Visa is piloting a program to explore using pre-funded stablecoins for faster cross-border payments [1]

Stablecoin Market Overview - Stablecoins are becoming a significant part of the new financial system, accelerating crypto adoption [2] - The total value of stablecoins has surpassed $300 billion, representing 1% of the global M2 money supply [3] - Stablecoins are outpacing traditional credit card systems due to lower transaction costs, faster settlements, and programmable rewards [17][18] - Total stablecoin supply surged to an all-time high of $2832 billion, with monthly senders reaching 252 million [20] Hedera's Role in Stablecoins - Hedera is positioning itself as a key player in the stablecoin space, having been involved for nearly four years [22][23][24] - USDC issued on Hedera is up 44% in the past week (equivalent to $35 million), but down 1234% in the past month (equivalent to $162 million) [7][8] - Hedera has been selected for Wyoming's Frontier Stable Coin (FRNT) and is involved in a Filipino bank's plan to launch a multi-issuer stablecoin (PHPX) [34][35] - Currently, there are three stablecoins on Hedera: USDC, Austrian Digital Dollar (AUDC), and StraitsX Singapore Dollar [14] DeFi on Hedera - DeFi TVL (Total Value Locked) on Hedera has been fluctuating around $100 million to $150 million, with a previous high of approximately $214 million [11] - The industry anticipates significant growth in DeFi on Hedera due to protocol upgrades and EVM compatibility [14] - Cross-border payments are inefficient, and stablecoins offer a potential solution, with Hedera being part of this push [32][33][34]

Market Outlook & Economic Policy - The market experienced gains for five consecutive months, defying seasonal expectations, driven by positive policy and macroeconomic factors [1] - Deregulation, particularly in crypto, and tax policy changes, including full expensing of manufacturing structures for three years, are expected to stimulate economic activity [2][3] - The effective corporate tax rate in the US is projected to be roughly 10% for the next three years, among the lowest globally, potentially leading to a productivity-driven economic boom [4][5] - The industry anticipates a shift from a rolling recession to a recovery and then a productivity-driven boom [5] Monetary Policy & Inflation - The fund's performance historically wasn't inversely correlated with interest rates [7] - Interest rates are expected to continue to decrease, and a productivity-driven boom could lead to surprisingly low inflation, potentially below 2% next year [8][9] Investment Strategies & Crypto - A barbell strategy is observed, combining equities to capitalize on lower interest rates and gold as a hedge against geopolitical uncertainty [12] - Stablecoins, particularly Tether and Circle, holding 90% of the market, are considered an important trade, providing access to the decentralized finance (DeFi) ecosystem [14][15] - The company has exposure to Bitcoin, Ether, and Solana, believing all three will play a significant role [18] - The company did not invest in Bitcoin debt, but did invest in Ether and Solana due to staking opportunities [19] ETF Dynamics & IPOs - Surges in share creations in the fund A1, ahead of IPOs like Klarna, are theorized as a strategy to gain exposure to IPO shares [23] - The company doesn't have the ability to reject trades from authorized participants, as market makers and authorized participants handle all the flows [27][28]

Market Performance - September is showing unexpected gains, marking the potential for the fifth consecutive month of positive performance, attributed to favorable policy and macroeconomic conditions [1] - The effective corporate tax rate in the U.S. is projected to drop to approximately 10% for the next three years, significantly lower than the statutory rate of 21%, which is expected to stimulate economic activity [4][5] Tax Policy and Economic Outlook - A new tax policy allowing full expensing of manufacturing structures and certain R&D expenditures is anticipated to drive a boom in economic activity, with implications for productivity and inflation [3][4] - The transition from a rolling recession to a recovery phase is expected, leading to a productivity-driven economic boom, with inflation potentially falling below 2% next year [5][9] Interest Rates and Investment Strategies - Lower interest rates are expected to benefit technology and innovation-focused investments, with a correlation between the fund's performance and interest rate movements [6][8] - A barbell investment strategy is being observed, where equities are favored for their growth potential in a low-rate environment, while gold serves as a hedge against uncertainty [10][12] Cryptocurrency and Stablecoins - The growing interest in stablecoins, particularly Tether and Circle, is noted as a significant trend, with expectations for decentralized financial services to expand on public blockchains [14][15] - The investment strategy includes exposure to major cryptocurrencies like Bitcoin, Ethereum, and Solana, with a focus on staking for yield as a critical component of the Ethereum investment narrative [18][20] IPO Activity and Market Dynamics - Recent trading activity around IPOs, particularly with Ark's involvement, suggests a strategy to gain exposure to new listings, although the firm does not have control over the trades executed by authorized participants [22][28] - The firm has been a cornerstone investor in notable IPOs, such as Circle, indicating a proactive approach to capitalizing on market opportunities [24][26]

“Stablecoins will bring more risks than benefits—and alternatives exist.” In a guest essay, an economics professor and Nobel laureate explains why these digital tokens may have been misnamed https://t.co/uGEqZwdO9g ...