Colombia
Num Finance, a Latin America-based stablecoin issuer, has launched nCOP, a stablecoin pegged to the Colombian peso (COP) on the Polygon network. The stablecoin aims to facilitate borderless transactions and provide a fast, secure, and low-cost way to send and receive payments in Colombia and beyond. It is backed 1:1 by Colombian Pesos held in a trust account by a licensed financial institution, and holders can redeem their tokens for COP at any time, subject to KYC/AML verification. It is compliant with the Colombian legal framework and supervised by the Superintendencia Financiera de Colombia (SFC), the country's financial regulator.
The new stablecoin is designed to serve as a bridge between traditional and crypto economies, enabling more financial inclusion and innovation in Colombia and the region. With nCOP, users can:
- Send and receive remittances across borders with minimal friction and cost.
- Access a range of DeFi services such as lending, borrowing, and staking.
- Earn an 8% yield on their holdings, creating a new source of income and financial inclusion for recipients.
Colombia is one of the main recipients of remittances in Latin America, with nearly USD 6.5 billion flowing into the country. Num Finance has previously launched stablecoins pegged to the Argentine peso (nARS) and the Peruvian sol (nPEN). The company aims to provide digital financial tools to the people of Latin America for their everyday financial needs.
USA
Tether Holdings Limited, the company behind USDT, has released another report to prove that its stablecoin is fully backed by reserves. The stablecoin is seems to be overcollaterized as the company’s total assets stood at $86.1 billion, while its liabilities amounted to $82.8 billion.
Here are some other figures on Tether’s reserves:
- In Q2 2023, Tether held $3.3 billion of reserve assets in excess to back the value of its stablecoins.
- Tether's reserves are mostly held in liquid investments of cash or cash equivalents, with 85% of its reserves in this category.
- Tether has allocated 58% of its assets to U.S. Treasury bills and ended 2022 with no commercial paper.
Tether's transparency and commitment to proving its reserves have helped it gain widespread adoption in the crypto community. As of August 2023, Tether is the third-largest cryptocurrency by market capitalization, with a market cap of over $60 billion.
FTX Update
FTX-affiliated cryptocurrency trading firm Alameda Research has reached a settlement with bankrupt crypto lender Genesis Global Capital.
Genesis has agreed to pay Alameda Research $175 million, marking a significant reduction from the nearly $3.9 billion claim that FTX had asserted earlier this year. The settlement will resolve all claims by FTX against Genesis «at a fraction of their face value”. The company also agreed to waive all claims against the FTX estate.
The settlement between FTX and Genesis highlights the complex network in the crypto industry, where firms became intertwined through loans, trades, and investments. Genesis was one of the main feeder of funds for FTX and instrumental to its fraudulent business model, with Genesis at one point having over $8 billion in outstanding loans to Alameda. FTX’s trading arm and its disastrous positions proved one of the linchpins in the exchange’s collapse.
FTX founder Sam Bankman-Fried has been charged with carrying out a «fraud of epic proportions». His bail was revoked this month by a U.S judge, who found probable cause for the charges. The settlement must still be approved by judges in each bankruptcy case.
News from other countries:
- Worldcoin lost more than 40% of its price in a month - after listing on major exchanges its rate was $2.21, and now it is $1.3. Regulators' claims to the collection of citizens' biometrics are having an impact.
- Crypto exchanges Kraken and Crypto.com have listed PayPal's PYUSD stablecoin.
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