The Catch-up Peg
We revisit the 2021 G7 Finance Ministers’ pledge to respect each jurisdiction’s monetary sovereignty when rolling out CBDCs and stablecoins, and ask if those promises are being kept.
Editorial hello
Dear subscribers, I have finally recovered from my summer flu! Thank you for your patience. One of the problems with running an editorial operation as a one-man op is that when you get struck down by illness or need to take a holiday, output goes to zero. I’m hoping this won’t be forever and that soon enough this service will have enough cashflow to ensure there can be at least two of us or more holding the fort.
In the meantime, to lighten the load and to ensure the spice content continues to flow, I’m joining forces with the wonderful Noelle Acheson from the Crypto is Macro newsletter for an upcoming podcast.
Until now, I’ve hesitated to start one because to do it well, you really need to invest time and energy in the product, which I am notoriously short of. Moreover, I don’t like talking to myself. And if you’re going to partner up with someone, it has to be someone who really knows their stuff. They’re hard to find. But Noelle Acheson fits the bill perfectly, and it seems a no-brainer that we should cooperate. The other plus is that we think we’ve come up with a format that complements our workload rather than adds to it.
I am certainly cautious of overcommitting to new concepts and then under-delivering on them. That’s why we will be running this as a pilot. If it works, it works. If not, then not. We’re going to start next Tuesday. More will be revealed shortly.
Today’s newsletter is a catch-up on the week before.
Coming up
On July 1, I will be moderating a stellar panel at the Stablecoins Unblocked conference in London on geopolitics and the role of stable money in an unstable world. If you’re in London do come along. Peg subscribers get a discount on the ticket price. The code is at the bottom of this newsletter.
Industry news
AllUnity Launches The First Fully Reserved Swedish Krona-Backed Stablecoin SEK AU
SEKAU is a MiCAR-compliant stablecoin that is fully backed 1:1 by Swedish krona reserves held in segregated accounts at Banking Circle, enabling instant settlement and cross-border use across multiple blockchains.
https://allunity.com/news/allunity-launches-the-first-fully-reserved-swedish-krona-backed-stablecoin-sekau
State Street Launches GENIUS Act Compliant Stablecoin Reserve Fund
The Rule 2a-7 government money market vehicle is structured to satisfy U.S. regulatory reserve requirements for issuers.
https://www.tokenizationinsight.com/post/state-street-launches-a-genius-act-compliant-stablecoin-reserve-fund?
Tether Signs Partnership With Dubai Trade Hub
The collaboration aims to boost adoption for trade finance, cross-border payments, and commercial settlements in the region.
https://fundstech.com/tether-signs-partnership-with-dubai-trade-hub/
Tether Winds Down aUSDT And Alloy Platform To Sharpen Focus
Tether is discontinuing its gold-backed aUSDT stablecoin and the Alloy platform, redirecting resources to higher-demand products such as XAUT after reviewing user activity and liquidity.
https://www.theblock.co/post/405190/tether-winds-down-ausdt
Fidelity Explores Or Launches Stablecoin Money Market Fund
The offering targets institutional and issuer needs for high-quality, liquid reserves that comply with regulatory standards while earning yield in the evolving digital asset environment.
https://www.theblock.co/post/405357/fidelity-stablecoin-money-market-fund?
