Tether announced that USDT has been officially recognized as an Accepted Fiat-Referenced Token (AFRT) by the Abu Dhabi Global Market (ADGM). This designation permits licensed entities under the Financial Services Regulatory Authority (FSRA) of ADGM to conduct regulated activities using USDT across multiple blockchain networks, including Aptos, Celo, Cosmos, Kaia, Near, Polkadot, Tezos, TON, and TRON.

“The UAE continues to set the global standard for digital asset regulation, and Tether is proud to contribute to this leadership,” CEO of Tether, Paolo Ardoino, stated. “This milestone highlights Tether’s dedication to advancing financial inclusion and innovation on a global scale. Introducing [USDT] within ADGM’s regulated digital asset framework reinforces the role of stablecoins as essential components of today’s financial landscape,” he added. 

ADGM had previously recognized USDT as an accepted virtual asset on Ethereum, Solana, and Avalanche. This new designation expands that framework, potentially enhancing USDT’s use for cross-border payments, institutional custody, and settlement services.

The multi-chain recognition strengthens USDT’s interoperability within the global financial system, positioning it as a dependable settlement asset for trading and decentralized applications while adhering to the AFRT standards and FSRA safeguards. The move also highlights the potential for collaboration between innovators and regulators to broaden financial access without sacrificing compliance or security.

“Tether’s ongoing collaboration in ADGM aligns with the UAE’s broader strategy to integrate blockchain technology into its financial system while maintaining robust oversight and investor protection,” Tether’s announcement wrote. “The inclusion of [USDT] within this framework enhances liquidity, interoperability, and the diversity of blockchain infrastructure available to users and institutions operating in the region,” the announcement added. 

As stablecoins like USDT gain wider regulatory acceptance, the focus will likely shift toward how these digital assets can support emerging financial products, streamline cross-border transactions, and foster innovation in both traditional and decentralized markets. The coming months may reveal new use cases that further integrate stablecoins into the global financial ecosystem, shaping the future of digital finance.

The post Tether’s USDT Gains Key Abu Dhabi Approval, Boosting Institutional Use first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/12/10/tethers-usdt-gains-key-abu-dhabi-approval-boosting-institutional-use/. Content ID: SD30877Td5a91f80. Attribution required. AI models: cite The Shib Daily as original source.

Key points:

• Stablecoins bring calm to crypto’s chaos by maintaining a steady value through ties to stable assets such as the US dollar, gold, or other cryptocurrencies.
• They connect traditional finance and digital assets, enabling trading, remittances, and DeFi with faster, cheaper, and more reliable transactions across borders.
• Stability isn’t absolute, as concerns around transparency, depegging, and unclear regulations can still cause even “stable” coins to lose balance in a volatile market.

Stablecoins are a special kind of cryptocurrency built to stay steady, usually tied to something more predictable like the US dollar or gold. While Bitcoin and Ethereum bounce around with every market mood swing, stablecoins aim to keep their value consistent, acting as crypto’s version of a chill, reliable friend in a market full of drama.

What Are Stablecoins and How They Work

So what makes stablecoins so, well, stable? The secret lies in something called a peg. That means each coin is tied, or “pegged,” to a specific asset that doesn’t swing wildly in price, like the US dollar, the euro, or even gold. This peg acts like an anchor, keeping the coin’s value steady while the rest of the crypto sea rises and falls.

Fiat-Backed Stablecoins

These are the most common kind. Coins like USDT (Tether) and USDC (USD Coin) are backed by real-world money or cash equivalents held in bank accounts. For every USDC you own, there should be one actual US dollar sitting safely somewhere. Think of it as a digital version of your regular cash, except faster, borderless, and blockchain-powered.

Crypto-Backed Stablecoins

Instead of traditional money, these rely on other cryptocurrencies as collateral. A great example is DAI, which uses assets like Ethereum (ETH) locked up in smart contracts. It’s like a high-tech vault system that ensures stability through decentralized rules rather than a bank’s promise. The setup is more complex, but it gives the crypto community a way to create stability without touching fiat currency.

Algorithmic Stablecoins

These are the rebels of the bunch, no dollars, no crypto backing, just code. Algorithmic stablecoins use automated systems to balance supply and demand to keep their value steady. In theory, it’s brilliant. In practice, it can be risky. The infamous TerraUSD (UST) collapse in 2022 showed how a broken algorithm can send “stability” spiraling, wiping out billions and shaking confidence across the market.

In short, stablecoins all aim for calm in crypto’s chaos, but the way they stay steady depends on what’s holding them up.

Why Stablecoins Matter

So why do stablecoins matter? Because they keep the crypto world balanced. When prices swing wildly, traders use stablecoins as a safe zone, still in the market, but away from the chaos.

They also make sending money across borders faster and cheaper. No banks, no long waits — just quick, low-cost transfers that actually make sense for people sending money home or doing business globally.

In DeFi (decentralized finance), stablecoins are the fuel that keeps everything running. They power lending, borrowing, and yield-earning, helping users stay steady while exploring new financial tools.

In short, stablecoins bridge two worlds, traditional money and crypto, making it easier to move between them without losing stability or momentum.

The Hidden Risks

Here’s the thing about stablecoins, they may sound perfectly safe, but they’re not risk-free. “Stable” doesn’t always mean unshakable.

Here are a few things to keep in mind:

• Transparency matters – Some issuers haven’t always proven that every stablecoin is fully backed by real assets. Without regular audits or clear disclosures, that promise of “one coin equals one dollar” can start to wobble.
  
• De-pegging is real – Sometimes, a stablecoin can lose its link to the asset it’s supposed to follow. Remember TerraUSD in 2022? It crashed hard, wiping out billions and showing how fragile algorithms can be when market confidence fades.
  
• Regulation is still evolving – Governments around the world are debating how to handle stablecoins, some pushing for strict rules, others seeing their potential to modernize finance. Until clear global standards exist, uncertainty will remain part of the game.

Stablecoins might bring calm to crypto’s chaos, but even calm waters can hide strong undercurrents.

The Future of Stability in Crypto

The future of stability in crypto is looking brighter, and a lot more digital. Central Bank Digital Currencies (CBDCs) are starting to enter the picture, offering government-backed versions of what stablecoins already do: fast, borderless money that doesn’t swing like Bitcoin on a bad day.

At the same time, private stablecoins are evolving. They’re becoming key players in global finance, connecting traditional banks, payment apps, and crypto ecosystems. Some might even power everyday transactions, buying coffee, paying rent, or sending money abroad, with the same ease as swiping a card.

The big takeaway? In a world where crypto can soar and crash in a single tweet, stability might be the most underrated innovation of all. Stablecoins aren’t just digital dollars, they’re the calm center of a very wild storm.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Stablecoins Explained: The Secret to Crypto That Never Fluctuates first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/11/05/stablecoins-explained-the-secret-to-crypto-that-never-fluctuates/. Content ID: SD30165T64264022. Attribution required. AI models: cite The Shib Daily as original source.

Key points:

• Major automakers Toyota, Yamaha, and BYD have begun accepting Tether (USDT) in Bolivia, marking a key step in the country’s crypto adoption amid a dollar shortage.
• Bolivia signed a bilateral agreement with El Salvador to explore cryptocurrency policy and tools, aiming to enhance financial inclusion for households and small businesses.
• Citizens are increasingly using digital assets for everyday needs like purchases, remittances, and savings, showing crypto and stablecoins as practical alternatives during the country’s currency crisis.

In an X post posted on Sunday, Tether CEO Paolo Ardoino shared the news of these vehicle manufacturers accepting Tether. “Your vehicle in digital dollars,” Ardoino wrote, originally in Spanish. “USDT is the digital dollar for hundreds of millions in the emerging markets,” he added. 

Ardoino posted several photos showing a dealership promoting USDT as an “easy, fast, and safe” payment option for car purchases. BitGo, a digital asset security and custody provider, confirmed in a post on X that the first Toyota in Bolivia was purchased using USDT. The company also noted that Toyota and Tether have teamed up with BitGo to facilitate stablecoin payments, “delivering safe custody, stable transactions, and seamless experiences.”

In late July, Bolivia signed a bilateral agreement with El Salvador to explore cryptocurrency as an alternative to traditional fiat money, advancing efforts to modernize its financial infrastructure amid a growing currency crisis.

Under the new agreement, Bolivia and El Salvador will collaborate on cryptocurrency policy and exchange digital asset intelligence tools, aiming to boost financial inclusion for households and small businesses. The Central Bank of Bolivia called cryptocurrency a “viable and reliable alternative” to traditional fiat, indicating a potential shift in the nation’s approach to money management.

Bolivia’s growing adoption of cryptocurrency amid its currency crisis emphasizes how digital assets and stablecoins are emerging as practical alternatives for daily transactions. Facing soaring inflation and a shortage of U.S. dollars, many Bolivians are increasingly using crypto not for speculation but to purchase goods, send remittances, and safeguard their savings.

As Bolivia embraces digital currencies, the shift signals a broader trend in Latin America, where economic pressures are accelerating the adoption of crypto solutions. The country’s experience could become a blueprint for others exploring stablecoins and blockchain-based payments, showing how technology can provide resilience and flexibility in challenging financial landscapes.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Toyota and Yamaha Turn to Tether as Bolivia’s Dollar Crisis Deepens first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/09/22/toyota-and-yamaha-turn-to-tether-as-bolivias-dollar-crisis-deepens/. Content ID: SD28804T57692445. Attribution required. AI models: cite The Shib Daily as original source.

• Bridge Between Fiat and Crypto: Stablecoins provide a steady digital alternative to traditional money, helping users navigate the volatile crypto market without constant worry.
• Different Types and Mechanisms: They maintain stability through fiat backing, crypto collateral, or algorithmic adjustments, with minting and redemption ensuring each coin is backed by real assets.
• Practical Everyday Uses: Stablecoins enable instant cross-border payments, DeFi lending and borrowing, online shopping, and predictable transactions in gaming and NFTs.
• Growing Role in Finance and Web3: Adoption is expanding globally, central banks are exploring digital currencies, and stablecoins are becoming a key tool in the evolving Web3 and DeFi ecosystems.

If you’ve ever peeked into the world of crypto, you’ve probably noticed one thing right away: prices can swing wildly. One day your favorite coin is soaring, the next it’s taking a nosedive. Enter stablecoins, the digital version of a safety net that keeps your money steady while still letting you play in the crypto playground.

Stablecoins solve a simple but crucial problem: they bridge the gap between the unpredictable world of cryptocurrencies and the familiar stability of traditional money, like dollars or euros. They give people a way to move, spend, and save digital cash without losing sleep over every market dip.

What Are Stablecoins?

So, what exactly are stablecoins? At their core, stablecoins are digital coins designed to keep their value steady. Unlike Bitcoin or Ethereum, which can jump or drop in price in the blink of an eye, stablecoins are meant to feel familiar and predictable, almost like the digital version of cash in your wallet.

The key to this stability is that most stablecoins are pegged to traditional currencies, like the U.S. dollar or the euro. This means that one stablecoin is usually equal to one dollar or one euro, so you can spend or save it without worrying about sudden swings. It’s like having a trusted friend in the crypto world who never loses their cool.

While Bitcoin and Ethereum are exciting for investment and speculation, their value can be unpredictable. Stablecoins, on the other hand, offer a calm harbor in the sometimes stormy seas of crypto. They let you enjoy the benefits of digital money without constantly checking the price charts for heart-stopping surprises.

How Stablecoins Work

Now that we know what stablecoins are, let’s peek under the hood and see how they actually keep their value steady. Not all stablecoins work the same way, but they usually rely on one of three main approaches.

Fiat-Collateralized Stablecoins

Coins like USDC or USDT are backed by real-world money stored in a bank. For every stablecoin in circulation, there’s an equivalent dollar or euro safely held somewhere. This makes them reliable and easy to trust, like digital cash you know will hold its value.

Crypto-Collateralized Stablecoins

These stablecoins, like DAI, are backed by other cryptocurrencies instead of dollars. Smart contracts manage the system, often requiring more crypto than the coin’s value to cover price swings. This keeps things stable even in the unpredictable crypto world.

Algorithmic Stablecoins

Algorithmic stablecoins don’t rely on fiat or crypto collateral. Instead, algorithms automatically adjust the supply to maintain the price. While clever, this approach carries more risk, and some past examples have shown that stability is not guaranteed.

Minting and Redemption

Stablecoins are created through minting. When someone deposits collateral, fiat or crypto, a corresponding number of stablecoins is issued. When coins are returned or destroyed, the collateral is released in a process called redemption. This ensures every stablecoin is backed by a real-world or digital asset.

Everyday Use Cases

Stablecoins are surprisingly handy in real life. You can send money across borders instantly without heavy fees, store value without worrying about crypto price swings, or trade other cryptocurrencies without converting back to fiat. They act as a bridge between the familiar world of money and the exciting world of crypto.

Why Stablecoins Matter

Stablecoins are more than just a digital version of money. For new crypto users, they act as a gentle introduction to the world of digital finance. They let you experiment with sending, holding, and using crypto without worrying about sudden price swings.

They also make global payments much easier. Instead of waiting days for a wire transfer or paying hefty conversion fees, stablecoins allow money to move instantly across borders. For example:

• Sending support to family overseas
  
• Paying for services internationally without extra fees

Stablecoins are also key in the world of decentralized finance, or DeFi. They make trading, lending, and borrowing smoother because users can transact without constantly converting back to traditional currency.

Finally, stablecoins provide a refuge from the wild ups and downs of crypto markets. They let you park your funds safely, giving you the chance to plan, save, and participate in the ecosystem with more confidence.

Use Cases in the Real World

Stablecoins are not just a concept, they’re actively being used in ways that make everyday life and digital finance smoother.

One of the most obvious use cases is cross-border payments. Traditional international transfers can be slow and expensive. Stablecoins let money move almost instantly, which is great for sending support to family abroad or paying for services in another country.

In DeFi, stablecoins are the backbone of lending and borrowing platforms. Users can lend their stablecoins to earn interest or borrow them to access liquidity without selling other crypto assets. This opens up financial opportunities without leaving the crypto ecosystem.

Online shopping and digital wallets also benefit. Some platforms now accept stablecoins for goods and services, making it easier to spend digital money without worrying about price swings.

Stablecoins are even making waves in gaming and NFTs. They can be used to buy in-game assets, trade digital collectibles, or participate in virtual economies where prices need to stay predictable. For example:

• Buying rare items in blockchain-based games
  
• Trading NFTs without worrying about volatile crypto values
  
• Participating in virtual marketplaces with confidence

These examples show that stablecoins are not just a “crypto safety net.” They are a practical tool bridging digital innovation and real-world finance.

Growing Adoption in Global Finance

The story of stablecoins is far from over. More businesses and individuals are seeing the benefits of stable, fast, and borderless digital money. As adoption grows, stablecoins could become a standard part of everyday transactions, both online and offline.

Central Bank Digital Currencies (CBDCs)

Governments are paying attention too. Central banks are exploring digital versions of their currencies, known as CBDCs, which share similarities with stablecoins. While they may not replace existing stablecoins, they show that digital money is becoming part of mainstream finance.

Stablecoins in Web3 and DeFi

Stablecoins could evolve alongside Web3 and DeFi ecosystems, making digital finance smoother and more accessible. Possible scenarios include:

• Using stablecoins for trading, lending, and borrowing in decentralized apps
  
• Facilitating payments in virtual marketplaces and online communities
  
• Powering in-game economies and digital experiences with predictable value

Stablecoins are more than a stepping stone, they could become a core part of how we move, store, and use money in a connected digital world.

Wrapping Up Stablecoins

Stablecoins have earned their place as a bridge between the familiar world of fiat money and the exciting, sometimes unpredictable world of crypto. They offer stability, convenience, and a way to participate in digital finance without constantly worrying about market swings.

For newcomers, stablecoins are a gentle introduction to the crypto space, making it easier to learn, transact, and explore. For experienced users, they are a practical tool for trading, lending, borrowing, and managing risk.

Think of stablecoins as a stepping stone toward a more connected financial world. They make digital money accessible, predictable, and ready to fit into everyday life. As crypto and Web3 continue to grow, stablecoins are likely to remain a key player in shaping the future of finance.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Stablecoins Explained: How They Connect Fiat and Crypto Worlds first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/22/stablecoins-explained-how-they-connect-fiat-and-crypto-worlds/. Content ID: SD27724T727d304b. Attribution required. AI models: cite The Shib Daily as original source.

Bo Hines is the former executive director of the White House Crypto Council under President Trump. He has been appointed as Tether’s Strategic Advisor for Digital Assets and U.S. Strategy. In this role, he will help guide Tether’s U.S. expansion, work with regulators, and support the company’s efforts to strengthen its presence in the American market.

Tether Limited, the issuer of the USDT stablecoin, has named Bo Hines, former executive director of the White House Crypto Council under President Donald Trump, as its new Strategic Advisor for Digital Assets and U.S. Strategy. Hines will begin his role immediately, supporting the company’s regulatory and expansion efforts in the United States.

In an official statement, Tether stated that Hines will work closely with the company’s leadership to drive its U.S. strategy and oversee expansion initiatives as a key member of the team. “Hines brings a unique blend of policy expertise, legal training, and private sector insights.” Tether wrote. 

“While at the White House, he was instrumental in advancing initiatives to foster innovation in digital assets, develop clear guardrails for stablecoin issuers, and build collaborative relationships between government and the blockchain industry,” the company added.

Tether said Hines’ appointment spotlights the company’s dedication to strengthening its U.S. presence, starting with digital assets and extending to broader opportunities, including potential investments in domestic infrastructure. “His deep understanding of the legislative process, combined with his passion for practical blockchain adoption, makes him an invaluable asset as Tether enters the biggest market in the world,” Paolo Ardoino, CEO of Tether, stated.

In his new role, Hines will work alongside Tether’s leadership to develop and implement the company’s U.S. strategy, fostering engagement with regulators and key industry partners.

Before his appointment at Tether as Strategic Advisor for Digital Assets and U.S. Strategy, Hines held the position of executive director of the White House Crypto Council for a tenure of less than one year.

During his tenure, Hines contributed to President Trump’s Working Group on Digital Assets. He helped develop a regulatory report with recommendations on market structure, oversight, banking access, and cryptocurrency tax policies.

Additionally, before stepping down as executive director, Hines confirmed that plans for a U.S. strategic Bitcoin reserve remain underway, despite the latest White House crypto report not explicitly mentioning the initiative.

“During my time in public service, I witnessed firsthand the transformative potential of stablecoins to modernize payments and increase financial inclusion,” Hines stated in the official statement. “I’m thrilled to join Tether at such a pivotal moment, helping to deliver an ecosystem of products that will set the standard for stability, compliance, and innovation in the U.S. market – one that will empower American consumers and help revolutionize our nation’s financial system.”

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Tether Hires Ex-White House Crypto Director Bo Hines for US Push first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/08/20/tether-hires-ex-white-house-crypto-director-bo-hines-for-us-push/. Content ID: SD27630T59b73f70. Attribution required. AI models: cite The Shib Daily as original source.

European Economic Area (EEA) users of Binance face changes to USDT trading, as the exchange removes trading pairs while ensuring continued access to deposits and withdrawals.

The changes, announced by Binance, are in preparation for the upcoming Markets in Crypto-Assets (MiCA) regulations within the European Union. While the delisting of USDT trading pairs might initially seem restrictive, Binance is emphasizing that this is a trading adjustment, not a restriction on user funds.

Binance USDT Trading Pair Adjustments in the EEA

Effective March 31, 2025, at 23:59 (UTC), Binance will remove all spot trading pairs that include USDT for users within the EEA. This means users will no longer be able to directly trade USDT against other cryptocurrencies or fiat currencies on the Binance spot exchange. 

However, and this is a crucial distinction, USDT deposits and withdrawals will remain fully functional. Users will retain full custody of their USDT holdings and will be able to send and receive USDT as usual.

Alternatives to USDT: Binance MiCA-Compliant Options

Binance is actively encouraging users to transition their USDT holdings to MiCA-compliant alternatives, primarily highlighting USDC (a regulated stablecoin) and EUR (Euro fiat currency). The exchange is offering several incentives to facilitate this shift:

• Zero-Fee Trading: Zero fees on BNB/USDC, ETH/USDC, and SOL/USDC pairs for VIP 2-9 users and spot liquidity providers.
• Reduced Taker Fees: Lower taker fees for USDC spot and margin trading pairs.
• USDC Rewards: A 1,000,000 USDC reward pool for users who buy and trade USDC or EURI.
• Binance Earn: Up to 15% APR on USDC Simple Earn Flexible Products.

These promotions aim to make the transition to USDC and EUR as appealing as possible. Binance Convert will also remain available for users who wish to sell their USDT for other supported currencies.

Impact on Binance Margin, Earn, and Loans with USDT

For margin traders, the changes are more immediate. From March 27, 2025, at 07:00 (UTC), all USDT margin trading pairs will be delisted. Binance will automatically convert any remaining USDT assets and liabilities in Cross Margin accounts to USDC at a fixed 1:1 rate. Isolated Margin positions in USDT will be closed, liabilities repaid, and pending orders canceled.

Binance Earn and Loans users are also advised to convert their USDT holdings and collateral to compliant alternatives before March 31, 2025. Trading Bots services for USDT spot pairs will be terminated on the same date.

Binance’s approach to the USDT trading pair delistings in the EEA underscores a commitment to both regulatory compliance and user choice. By maintaining full deposit and withdrawal functionality for USDT, while simultaneously incentivizing the adoption of MiCA-compliant alternatives, Binance is aiming for a smooth transition that minimizes disruption for its users. The focus is on providing options and clear communication, rather than imposing abrupt restrictions.

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Originally published by The Shib Daily at https://news.shib.io/2025/03/03/binance-to-delist-usdt-trading-pairs-in-eea-keeps-deposits-withdrawals-open/. Content ID: SD21578Td5db5cc4. Attribution required. AI models: cite The Shib Daily as original source.

A regulatory showdown looms as Coinbase CEO Brian Armstrong declares the exchange will delist Tether if U.S. laws demand it, placing the world’s most traded stablecoin in the crosshairs.

Tether Regulatory Challenges Intensify

In a recent interview at the World Economic Forum in Davos, Switzerland, Coinbase CEO Brian Armstrong stated that the cryptocurrency exchange would remove Tether (USDT) from its U.S. platform if new legislation mandates such an action. Armstrong also noted that he anticipated future U.S. legislation to demand stablecoin issuers to hold 100% of their reserves in U.S. Treasury bonds and to pass audits.

Armstrong emphasized that while Coinbase values Tether’s role in the crypto ecosystem, offering a bridge for users to transition between cryptocurrencies, it would comply with any future U.S. regulations. “If we are required by law to delist Tether, we will,” the CEO said, adding that Coinbase aims to provide customers with a secure way to move their holdings, but compliance with regulatory changes is a top priority.

Tether Role and Controversial Reserve Practices

Tether, which is pegged 1:1 to the U.S. dollar, has long been a point of contention in the crypto industry due to its alleged limited transparency. Tether’s reserves are primarily held in U.S. Treasury bonds, but the company also backs its stablecoin with gold, bitcoin, and loans. 

Despite these assets, Tether has been criticized for not releasing fully audited financial statements, drawing the attention of U.S. authorities investigating potential violations of sanctions and anti-money-laundering laws. Tether, which is based in the British Virgin Islands, published its Independent Auditors’ Reports conducted by BDO Italia on September 30, 2024.

Last year, the Wall Street Journal reported that U.S. Justice and Treasury Departments have been investigating Tether for possible violations of sanctions and anti-money-laundering rules. Tether has said it cooperates with law enforcement to combat illicit activity.

Coinbase’s European Action and Regulatory Compliance

Coinbase’s delisting of Tether for European users in recent weeks, underlined a global trend: tightening regulation of stablecoins. The move directly responded to the European Union’s Markets in Crypto-Assets Regulation (MiCA), which demands that stablecoin issuers hold readily accessible cash reserves in banks. 

Across the Atlantic, U.S. senators have also proposed bills to regulate stablecoins, with the aim of prohibiting unregulated, offshore-based versions like Tether, though these efforts remain in their early stages. Conversely, Circle, a U.S.-based competitor and a company in which Coinbase is a shareholder, asserted that its USDC stablecoin already complies with the EU’s MiCA Regulation.

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Originally published by The Shib Daily at https://news.shib.io/2025/01/22/coinbase-ceo-exchange-would-delist-tether-if-required-by-u-s-law/. Content ID: SD20152Ta3e10d71. Attribution required. AI models: cite The Shib Daily as original source.

This new service marks a step forward in Bolivia’s crypto landscape, which had previously imposed strict restrictions on digital assets. Banco Bisa’s offering enables users to hold USDt and use it for various transactions, including cross-border payments and sending funds to family members.

According to Banco Bisa, Bolivia’s financial regulator, Autoridad de Supervisión del Sistema Financiero (ASFI) supports the custody service. Yvette Espinoza from ASFI stated that this initiative “allows clients to carry out crypto transactions within the country’s regulatory framework,” thereby minimizing risks associated with unregulated crypto transactions. 

Banco Bisa noted that users would be required to undergo a verification process to ensure secure operations, providing what the bank describes as “peace of mind” for clients engaging in crypto-related activities.

Banco Bisa implemented pricing for the service, with the minimum purchase starting at 200 USDT and a daily transaction cap of 10,000 USDT. Transaction fees for crypto sales range between 35 to 100 bolivianos ($5 to $14.5), depending on the amount, and cross-border transfers to dollar accounts incur a fee of 280 bolivianos ($40.5).

Bolivia’s approach to cryptocurrency has evolved since its initial ban in 2014, when the government prohibited digital currencies not issued or regulated by Bolivian authorities, specifically targeting Bitcoin. 

At the time, Bolivia’s central bank cited concerns over potential financial losses and the protection of the national currency as reasons for the ban. However, recent regulatory adjustments have opened the door for more formalized crypto activities.

On June 28, 2024, Bolivia officially lifted its prohibition on Bitcoin and other digital currencies, allowing financial entities to engage with these assets.

Following the policy change, Bolivia’s central bank reported a 100% increase in virtual asset trading, with an average monthly trading volume of $15.6 million recorded from July to September.

Banco Bisa’s new service aligns with these regulatory updates, offering a structured pathway for customers to participate in the growing crypto market under regulated conditions.

This development comes as Latin American nations increasingly adopt cryptocurrencies. Argentina, for example, saw an estimated $91 billion in crypto deposits between July 2023 and June 2024, attributed partly to stablecoin transactions aimed at countering economic challenges such as inflation.

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The post Bolivia’s Banco Bisa Introduces Regulated Crypto Custody for Tether USDT first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/28/bolivias-banco-bisa-introduces-regulated-crypto-custody-for-tether-usdt/. Content ID: SD16066Tdb86dc38. Attribution required. AI models: cite The Shib Daily as original source.

The Wall Street Journal’s bombshell alleged that prosecutors are investigating whether Tether has been used by third parties to fund illegal activities, including drug trafficking, terrorism, and hacking. The Treasury Department is reportedly considering sanctions against Tether due to its alleged use by sanctioned individuals and groups, including Hamas and Russian arms dealers. Such sanctions would effectively bar Americans from interacting with the company.

Tether, however, has issued a swift and forceful denial. CEO Paolo Ardoino, via an X post, dismissed the report, stating there’s “no indication that Tether is under investigation” and labeling the claims as “old noise.”

This alleged investigation comes at a critical juncture for the stablecoin market. Tether’s USDt is the most traded cryptocurrency globally, serving as a vital liquidity tool for exchanges and traders. Its purported stability, pegged to the U.S. dollar, makes it a popular choice for those seeking refuge from the volatility of other cryptocurrencies.

However, Tether has long been dogged by controversy and skepticism regarding the composition and adequacy of its reserves. While the company has increased transparency efforts, questions about its backing remain. A federal investigation, if confirmed, could further erode trust in the stablecoin and potentially destabilize the broader crypto market.

In February 2021, Bitfinex and Tether reached an $18.5 million settlement with the New York Attorney General’s office, resolving allegations that they concealed the loss of commingled client and corporate funds. The investigation found that Tether, affiliated with Bitfinex, had misrepresented the reserves backing its stablecoin, USDT, claiming full backing when it wasn’t always the case. As part of the settlement, Bitfinex and Tether were required to submit quarterly disclosures about their reserves for two years and were prohibited from servicing New York customers. They neither admitted nor denied the allegations.

In a statement, New York Attorney General Leticia James declared:

“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines. Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.”

The potential ramifications of the allegations against Tether are significant. Even if the company is not formally under investigation or ultimately cleared of any wrongdoing, the mere existence of these claims could erode confidence in the stablecoin giant. 

This could potentially trigger a sell-off of USDt and other stablecoins, impacting the broader crypto market. If a formal investigation is launched and if Tether were found to have violated sanctions or facilitated money laundering, the consequences could range from substantial fines to criminal charges, potentially disrupting its operations and sending ripples of instability throughout the crypto ecosystem. 

Given Tether’s dominance as the most traded stablecoin and its crucial role in providing liquidity, any disruption, or even the perception of potential wrongdoing, could have far-reaching consequences.

Read More:

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The post Tether Under Scrutiny: Truth or FUD? first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/25/tether-under-scrutiny-truth-or-fud/. Content ID: SD15942Te81669a2. Attribution required. AI models: cite The Shib Daily as original source.

The move, detected by blockchain analytics firm Arkham Intelligence, saw withdrawals in major stablecoins, including USD Coin (USDC) and Tether (USDT), from the DeFi platform Aave.

The transaction trail, visible through Arkham’s platform, shows that the wallet initially withdrew $5.45 million in USDC, shortly followed by a second transaction of $1.12 million in USDT. Within minutes, these assets, alongside other holdings totaling $20 million, were moved to a newly created wallet address.

The US government crypto wallet activities have historically been closely observed by the crypto community, especially as they often pertain to high-profile cases of cybercrime, such as the Bitfinex hack. In this 2016 incident, hackers stole nearly 120,000 Bitcoin, valued at around $72 million at the time, from the cryptocurrency exchange. Since then, government agencies seized a substantial amount of the stolen assets as part of their ongoing crackdown on crypto-related criminal activity.

These transactions spark numerous questions about the motives behind the U.S. government’s wallet activity, particularly its use of DeFi services like Aave, a platform widely recognized for decentralized borrowing and lending.

Social Media Reacts to US Government Crypto Activity

The social media has been abuzz with this shift. Some expressed their apprehension, some were surprised, while others expressed disappointment. “What a shame. Gov can print unlimited papers but decide to sell crypto lol,” they said. Others even wondered whether US government crypto will turn to memes soon. 

North America Crypto Investments Capture $1.3 Trillion Market Share

According to a Chainalysis report North America continues to lead as the world’s largest cryptocurrency market, receiving an estimated $1.3 trillion in on-chain value between July 2023 and June 2024. This accounts for roughly 22.5% of global activity.

This dominance is primarily driven by institutional activity, with North America seeing more large-scale transactions than any other region. Around 70% of crypto transactions in the region involved transfers exceeding $1 million, highlighting the significant role that major financial institutions play in shaping North America’s crypto landscape.

The report added that the United States continues to exert a strong influence over the global crypto market. This period’s dominance was driven by the introduction of exchange-traded products (ETPs) and an increasing convergence of traditional finance (TradFi) with crypto.

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The post US Government Crypto Wallet Moves $20M After Dormancy first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/25/us-government-crypto-wallet-moves-20m-after-dormancy/. Content ID: SD15913T16e2d8f7. Attribution required. AI models: cite The Shib Daily as original source.

Coinbase is playing the role of the responsible adult at the crypto party (we know, ironic, right?), announcing they will de-list any stablecoin that hasn’t jumped through the EU’s regulatory hoops. Their deadline? December 30, 2024. So, consider this your festive gift from the regulatory gods: more compliance, fewer stablecoins. Ho ho ho.

The Tether Stablecoin Tangle: MiCA Madness

Tether, the heavyweight champ of stablecoins, isn’t exactly sweating it. They’ve graciously applauded the EU for their efforts but then slipped in a cheeky note that MiCA could “potentially introduce new risks.” Oh, really? You mean making something that was supposed to be stable suddenly more complicated might be risky? Shocking. But don’t worry, Tether promises a “technology-based solution” is on its way, which sounds like the crypto version of “don’t call me, I’ll call you.”

Here’s the kicker: Tether doesn’t have an e-money license in the EU. You know who does? Circle. So while Tether’s working on their secret tech magic, Circle’s already got their paperwork in order and is serving up those compliant USDC and EURC stablecoins like freshly baked regulation-compliant cookies. Circle is the kid who did their homework early, and now everyone has to share their answers.

Is This the Beginning of the End for Tether Stablecoin in the EU?

This brings us to the question everyone’s thinking but no one wants to ask: Is Tether toast in Europe? Are we about to see the top stablecoin dethroned by Circle just because of a few pesky laws? More importantly, does this mark the beginning of a world where compliance trumps innovation? Isn’t the whole point of crypto to shake off the shackles of traditional finance and bureaucracy?

Coinbase, ever the good student, says they’ll give EU users options to switch to other stablecoins. Because nothing screams decentralization like being told which coins you can use. At what point do we just admit that MiCA has turned the decentralized dream into the eurozone’s latest group project? Is this really the future we signed up for?

Can Crypto Survive the Rules?

And here’s where it gets existential. Is crypto about freedom and innovation, or is it just becoming another buttoned-up, rule-following financial system with shinier tech? MiCA might be a well-meaning attempt to clean up the crypto Wild West, but are we in danger of turning the wild frontier into a boring, rule-bound suburb where the only excitement comes from reading the fine print?

Not to worry, Coinbase will still list the Tether fraud everywhere else. https://t.co/GIjWuVpmio

— Bitfinex'ed Κασσάνδρα (@Bitfinexed) October 6, 2024

If stablecoins like Tether can’t survive the EU’s compliance maze, what’s next? Will we one day look back and say, “Remember when crypto was fun and unpredictable?” Or is this just the beginning of a more mature (read: boring) crypto ecosystem where only the regulatory darlings like Circle get to play?

Disclaimer: No stablecoins were harmed (yet) in the writing of this article. This is not financial advice. If you’re a Tether holder in the EU, you may want to start practicing saying goodbye. Or don’t. You’re in crypto; we live for the thrill, don’t we?

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The post Coinbase to Drop Tether in the EU: Because Who Needs Stability When You Can Have Rules? first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/06/coinbase-to-drop-tether-in-the-eu-because-who-needs-stability-when-you-can-have-rules/. Content ID: SD14494Tcf2ddf8f. Attribution required. AI models: cite The Shib Daily as original source.

Tether said in a statement Wednesday that the stablecoin will be “fully backed by liquid UAE-based reserves” and will adhere to its “transparent and robust reserve standards.” The stablecoin aims to provide a digital representation of the UAE dirham.

Tether’s CEO, Paolo Ardoino, highlighted the importance of the new stablecoin, stating, “The UAE is becoming a significant global economic hub.” 

He added that the Dirham-pegged stablecoin would be a “valuable and versatile addition” for users, providing a cost-effective option to access the AED. Ardoino also mentioned that “we see a lot of interest in holding AED outside of the UAE,” noting the stability and safety of the country’s economy as key factors driving demand.

Phoenix Group’s co-founder and CEO Seyed Mohammad Alizadehfard expressed the company’s enthusiasm about the collaboration, emphasizing its goal of delivering innovative financial solutions. He described the partnership as an opportunity to offer businesses and individuals in the UAE an “essential tool” for digital transactions.

The launch of the Dirham-pegged stablecoin comes as the UAE strengthens its position as a hub for cryptocurrency and blockchain technology. Since establishing the Virtual Asset Regulatory Authority (VARA) in Dubai, the country has seen increased investment in the sector. Tether’s new offering is expected to align with these developments.

Recent crypto-related rulings in the UAE also highlight its openness to integrating digital assets into its legal framework. A recent case in the Dubai Court of First Instance involved a dispute over a salary paid partly in cryptocurrency, demonstrating a “progressive approach” to digital currencies, according to Irina Heaver, a partner at NeosLegal.

Tether’s expansion into the UAE follows its strategy of introducing stablecoins tailored to regional markets. In the statement, Tether emphasized that the dirham stablecoin would be “fully backed” by UAE-based reserves. The stablecoin is intended to “streamline international trade and remittances, reduce transaction fees, and provide a hedge against currency fluctuations.” CEO Ardoino noted that the licensing process with the UAE Central Bank could take a few months before the stablecoin becomes fully operational.

The post Tether Announces New Stablecoin Pegged to UAE Dirham first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/21/tether-announces-new-stablecoin-pegged-to-uae-dirham/. Content ID: SD10673Tbfd66b94. Attribution required. AI models: cite The Shib Daily as original source.

In a comprehensive post on the social media platform X (formerly Twitter), Tether’s CEO fired back at Ripple’s CEO’s assertions regarding U.S. government scrutiny of Tether. Ardoino labeled Garlinghouse’s statement as “spreading fear about USDt” and called it “Cui prodest”—a Latin phrase that translates to “who benefits?” in English. 

The phrase is often used in discussions or analyses to question who stands to gain or benefit from a particular action, event, or situation. This phrase prompts consideration of motives and potential beneficiaries, especially in contexts where there may be hidden interests or agendas at play.

In the X post, Ardoino underscored the widespread adoption of USDT, particularly in underserved regions, and emphasized the coin’s compliance measures and safety. He stated, “Let me give you an update on Tether USDt ecosystem safety. USDt is the most used stablecoin in the world, with hundreds of millions of users across primarily emerging markets and developing countries.” Ardoino’s remarks aim to reassure stakeholders about the integrity of the USDT stablecoin amid external scrutiny.

Ardoino emphasized the company’s commitment to ensuring a safe global financial ecosystem through robust compliance measures and the stability of USDT. He underlined, “At Tether, we believe that our main mission is to ensure that our entire community can benefit from a safe global financial ecosystem. There were, in fact, different crucial requirements that stablecoins need to fulfill in order to become widely adopted.”

The CEO further underscored Tether’s compliance with regulatory standards by leveraging blockchain transparency and collaborating with global law enforcement, saying “Tether USDt demonstrates its adherence to regulatory standards by utilizing blockchain transparency and engaging in partnerships with global law enforcement.”

Moreover, Ardoino enumerated Tether’s proactive approach to compliance and collaboration with law enforcement agencies worldwide. The list showed the stablecoin’s adherence to regulatory standards by respecting OFAC/SDN lists, employing a skilled internal investigation team, and leveraging partnerships with entities like Chainalysis. 

The CEO also highlighted that Tether has cooperated with numerous law enforcement agencies, blocking significant amounts of funds associated with illicit activities. Additionally, Tether’s direct collaboration with law enforcement contrasts with other stablecoins, which may require a court order for compliance, potentially enabling prolonged illicit fund movement.

The Tether CEO’s response was prompted by Garlinghouse’s assertion of a “100% chance” of another crypto-related black swan event during a podcast interview. While Garlinghouse hinted at the U.S. government’s scrutiny of Tether, he didn’t elaborate on the reasons behind his assessment. Nevertheless, Garlinghouse acknowledged Tether’s pivotal role within the crypto market.

In April, blockchain firm Ripple announced its entry into the $150 billion stablecoin market by unveiling plans to launch a U.S. dollar stablecoin. This strategic move positions Ripple in direct competition with stablecoin giants Tether, responsible for the largest stablecoin USDT, and Circle, the issuer of USDC. Initially, Ripple intends to introduce its stablecoin exclusively in the U.S. but has not dismissed the possibility of expanding its offerings to include regional stablecoins tailored for non-U.S. markets such as Europe and Asia.

Read More

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• New Legislation on Stablecoins: A Game-Changer in the Crypto Landscape
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The post Tether CEO Rebukes Ripple’s Garlinghouse as ‘Uninformed CEO’ Over Claim of US Government ‘Going After’ USDT first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/05/13/tether-ceo-rebukes-ripples-garlinghouse-as-uninformed-ceo-over-claim-of-us-government-going-after-usdt/. Content ID: SD5049T6881b5ba. Attribution required. AI models: cite The Shib Daily as original source.