Crypto Chronicle with NewsCrypto
Greetings, NewsCrypto readers!
Think of the digital currency realm as a vast mountain range, with peaks of opportunities and valleys of challenges. Our Crypto Chronicle newsletter is your trusty guide, leading you through the terrains, ensuring you capture every breathtaking view and dodge every obstacle.
Lace up your boots, and let's embark on today's crypto expedition!
Here's what we got on the menu today:
1. TradFi Institutions Are Already Taking Advantage of Blockchain Technology
2. Are Stablecoin Really Stable?
3. Funny meme
TradFi Institutions Are Already Taking Advantage of Blockchain Technology
In a world still waiting for flying cars, financial giants BlackRock, Barclays, and JPMorgan Chase are giving us something worth paying attention to. BlackRock, in a futuristic move, utilized JPMorgan's Tokenized Collateral Network (TCN) to tokenize shares in one of its money market funds. These were then passed to Barclays as collateral for an over-the-counter (OTC) derivatives trade.
For the uninitiated, TCN is a private blockchain application on JPMorgan’s Onyx Digital Assets platform. This collaboration with BlackRock and Barclays marks TCN's debut in facilitating a collateral settlement for a live client OTC derivative transaction.
Efficiency and Speed: The New Norm
Highlighting the game-changing efficiency, the collateral between BlackRock and Barclays took merely a second to post. Ty Lobban, the head of Onyx Digital Assets, labeled this trade as a pioneering move in the firm’s blockchain journey.
Onyk Digital Assets: Leading the Way
JPMorgan's Onyx Digital Assets platform, launched in 2020, continues to innovate. With previous ventures like trading tokenized cash deposits on the Polygon blockchain, this recent collaboration sets the stage for more experimentation and developments.
As traditional finance and blockchain converge, collaborations like these signal the evolution of the TradFi. As we wrap up, remember: the world of finance is dancing into the future, one blockchain step at a time.
Are Stablecoins Really Stable?
In the ever-turbulent world of cryptocurrencies, the USDR stablecoin, backed by real estate, took a nosedive to $0.53 per coin on October 11th. But before you drop your coffee in shock, the team behind it assures it's just a hiccup, or in their words, a "liquidity issue".
A rush for the Exits
The USDR, which is issued by the Tangible protocol (a DeFi project with dreams of tokenizing your grandma's house and other real assets), lost its peg to the good ol' US dollar. This was due to a mad dash of redemptions that drained liquid assets like DAI from its treasury faster than you can say "blockchain".
The Domino Effect
As Tangible explained in a tweet, the rapid redemption of all liquid DAI from the USDR treasury led to a swift decrease in the market cap. And as we know, when panic sets in, it spreads like wildfire. The lack of DAI for redemptions triggered panic selling, causing the stablecoin to depeg.
In the midst of panic someone swapped $140k worth of wUSDR to $0.0001 USDC!
The Recovery Plan
Despite this hiccup, the project's developers are rolling up their sleeves and getting to work. They've promised to provide "solutions" to this conundrum, emphasizing that it's merely a temporary liquidity challenge. They've assured users that the real estate and digital assets backing USDR are still intact and will be used to support redemptions.
Stablecoins: Not Always So stalbe
For those new to the crypto, stablecoins aim to always be worth $1 on the open market. But sometimes, they're more like a rodeo bull, unpredictable and wild.
For instance, Circle’s USD Coin (USDC) once dipped to $0.885 per coin when a few U.S. banks faced bankruptcy. And then there's Terra’s UST, which lost its peg and is now valued at a mere $0.01 per coin.
The world of crypto is as unpredictable as a cat on catnip. While USDR's recent dip might have raised eyebrows, it's essential to remember that the crypto journey is filled with ups and downs.