Ripple challenges Tether and USDC with a new stablecoin, Ethena integrates Bitcoin for USDe, Binance tightens KYC, and Solana's failure rate soars.
Ripple Announces Plan to Launch a New Stablecoin

Ripple Announces Plan to Launch a New Stablecoin

Ripple challenges Tether and USDC with a new stablecoin, Ethena integrates Bitcoin for USDe, Binance tightens KYC, and Solana's failure rate soars.

Apr 6, 2024
| Issue

Welcome to the final edition of Datawallet Daily for the week. As always, we’ve curated the must-know crypto stories from the last 24 hours just for you:

Ripple Announces Plan to Launch a New Stablecoin

Ripple, the company behind the XRP Ledger, is launching its own U.S. dollar-pegged stablecoin, set to compete with established players like Tether and USDC. Promising 100% backing by U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents, Ripple aims to tap into the stablecoin market’s explosive growth, expected to reach $2.8 trillion by 2028. 

The stablecoin, adhering to the ERC-20 standard, will initially be available on the XRP and Ethereum blockchains. Emphasizing transparency, Ripple plans monthly audits and a compliance-first approach, targeting enterprise and banking sectors. Ripple CTO David Schwartz highlights the company’s long-term market ambition and commitment to security and regulatory compliance, even as Ripple navigates ongoing SEC litigation.

Ethena Adds Bitcoin as USDe Collateral Asset

Ethena Labs is integrating Bitcoin as a collateral asset for its USDe synthetic dollar, aiming to leverage Bitcoin’s futures market for scalability. The move follows USDe’s rapid growth, with its TVL nearing $2 billion, partly due to a successful airdrop campaign. This expansion into Bitcoin derivatives could enable it to scale USDe by 250%, despite BTC’s lack of native staking yield, by utilizing its superior liquidity. 

Ethena’s venture into BTC collateral comes as its ENA token reaches a market cap of $1.5 billion, enhancing USDe’s scalability and stability. The BTC integration will be visible in Ethena’s dashboards from tomorrow.

Binance Enforces Stricter KYC Rules for Exchange Link Accounts

Binance is enforcing strict Know Your Customer (KYC) requirements for its Exchange Link account holders, mandating verification for access. Starting March 20, restrictions were placed on noncompliant sub-accounts, with a deadline of May 20 for full compliance. Unverified accounts will face access restrictions, including limitations on deposits and trading activities. 

Sub-accounts must provide detailed information, including source of funds and any political affiliations, with Binance reserving the right to freeze funds for legal reasons. Additionally, Binance’s NFT marketplace will stop supporting Bitcoin Ordinals trades and deposits from April 18, as part of streamlining efforts.

Solana’s Transaction Failure Rate Skyrockets to 75%

The Solana network is reportedly facing challenges, with about 75% of its transactions failing due to a surge in demand for memecoins. This high failure rate, unprecedented in the network’s history, has prompted complaints from users about a poor experience. Despite this, some advocates argue that the data is misinterpreted, attributing the bulk of failed transactions to
“bot spam” rather than genuine user activity. 

Helius CEO Mert Mumtaz suggests that most of these failed attempts are bots failing at arbitrage, implying minimal impact on regular users. Meanwhile, Solana’s leadership acknowledges the issue, with CEO Anatoly Yakovenko highlighting the difficulty in addressing congestion bugs compared to outright network failures. 

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