Investment bank HSBC said S&P Global Ratings’ decision to cut Tether’s reserve assessment to weak is a reminder that stablecoins carry an embedded “de-pegging” risk that doesn’t apply in the same way to other forms of tokenized money. The core issue is straightforward: if holders rush to redeem, a stablecoin issuer needs reserves that are unquestionably liquid and low-risk, or the token’s price can wobble away from its intended peg, analysts Daragh Maher and Nishu Singla said in the Monday report. Stablec ...

Core Insights - Bitcoin experienced a 2% drop to $107,000 as early Bitcoin holders, known as "OGs," deposited significant amounts to exchanges, raising concerns in the market [1][2] Group 1: Market Movements - Approximately 13,000 BTC (valued at $1.48 billion) has been deposited by an early investor to exchanges like Kraken, Binance, and Coinbase since October 1 [1] - Another OG, Owen Gunden, transferred 3,265 BTC (worth $364.5 million) to Kraken since October 21 [2] Group 2: Analyst Perspectives - Analysts are divided on the implications of whale movements, with some fearing a "crypto winter" while others suggest it could lead to a rally as seasoned investors buy back in [3][4] - Joe, a crypto influencer, noted that large transfers do not always indicate selling; they can also represent rotation or hedging strategies [3] Group 3: Exchange Dynamics - Binance reported a record monthly net inflow of around $7 billion in October, primarily driven by stablecoins, with Tether's USDT and Circle's USDC contributing $5 billion and $2 billion, respectively [5] - Bitcoin and Ethereum saw net outflows in October, with Binance recording a $1.5 billion net outflow in BTC and $500 million in ETH, which is often interpreted as bullish behavior indicating long-term holding [6] Group 4: Future Predictions - Analyst Ali Martinez indicated that Bitcoin has been forming a "broadening top" pattern since July and may not have peaked yet, predicting a potential surge in November followed by a significant reversal by year-end [7]

Core Insights - PayPal Ventures has invested in Stable's latest funding round, enabling the use of PayPal's stablecoin, PayPal USD (PYUSD), on Stable's blockchain network [1][4] - Stablechain is designed for seamless financial transactions through stablecoins, aiming to enhance the utility of PYUSD across multiple blockchain ecosystems [2][4] - The collaboration between Stable and PayPal focuses on improving cross-border transactions and exploring cross-chain compatibility and onramp/offramp capabilities for stablecoins [3][4] Company Developments - Stable raised $28 million in seed funding to develop its blockchain network, hire new employees, and increase the distribution of Tether's USDT stablecoin [4] - The company emphasizes the need for an overhaul in global payments infrastructure to meet consumer demand for fast, reliable, and secure digital payments [6] - Stable's strategy includes working with trusted distribution partners to enhance real-world adoption and support innovative use cases for stablecoins [7] Market Context - The announcement comes amid rising stablecoin adoption following the passage of the GENIUS Act in the United States, indicating a favorable regulatory environment for stablecoin usage [5] - The partnership with PayPal is seen as a significant step towards addressing payment challenges in emerging markets, where reliable dollar-based payments can have a substantial impact [7]

🇦🇪 JUST IN: UAE's real estate giant RAK Properties will start accepting payments in crypto including Bitcoin, Ethereum, and Tether's USDT for international property transactions. https://t.co/EXGl9AOuVD ...