Stablecoins continue to meet the significant global demand, specially in emerging economies. According to a new analysis from BVNK and the Centre for Economics and Business Research, businesses and consumers in 17 countries are willing to pay an average premium of 4.7% to access stablecoins pegged to the US dollar. The figure rises to 30% in Argentina.Â
By 2027, these countries are expected to spend $25.4 billion in premiums alone for stablecoin access. The report also sheds light on the inefficiencies of current cross-border payment systems, currently trapping $11.6 billion in working capital due to settlement delays. Stablecoins are expected to facilitate $2.8 trillion in cross-border payments by the end of this year.
Circleâs USD Coin (USDC) stablecoin reportedly saw a surge in trading volume in July, spurred by compliance with new European regulations. Meanwhile, Tetherâs USDT (USDT) still holds a large chunk of stablecoinsâ market share, with 70% of their $164 billion global market capitalization.
âWith industry leaders already predicting the stablecoin market cap will grow from $160bn to $1 trillion in the next few years, stablecoin payment volumes could reach $15 trillion by 2030,â BVNK co-founder Chris Harmse said in a statement.
This weekâs Crypto Biz also explores Tetherâs profit record, bank-linked crypto trading in the United Arab Emirates, Polymarketâs growth amid the US election season, and Coinbaseâs custodian arm.
Tether reports record-breaking $5.2 billion profit in first half of 2024
Tether reported record profits of $5.2 billion for the first half of 2024 and an increase in its US Treasury holdings to $97.6 billion. At the end of July, USDTâs total market capitalization was about $114 billion, with total reserves exceeding $118 billion. The companyâs Treasurys reserve now surpasses the size of all but 17 of the worldâs governments, including Germany, the United Arab Emirates and Australia.Â
Tether is said to be reinvesting a portion of its profits in adjacent industries, including sustainable energy, Bitcoin (BTC) mining, data, artificial intelligence infrastructure, peer-to-peer telecommunications technology, neurotech and education.
UAE residents can now trade crypto directly with their bank accounts
Crypto exchange M2 announced that United Arab Emirates residents can now buy and sell Bitcoin and Ether (ETH) directly using their bank accounts. The integration allows for the direct conversion of dirhams into BTC and ETH, enabling users to trade these cryptocurrencies against the local currency on M2âs spot markets. Additionally, users can deposit and withdraw dirhams, one of the exchangeâs executives told Cointelegraph.Â
The M2 team believes this will help users quickly adapt to market changes. The new service is reportedly regulated by the UAE government.
Polymarket tops $1 billion in betting volume amid US election hype
Decentralized prediction platform Polymarket has surpassed $1 billion in betting volume amid the hype around the upcoming US presidential elections. This surge is driven by significant wagers on the electionâs outcome, with over one-third of the volume in just the last 30 days. Based on data from Dune Analytics, betting volume on Polymarket reached $343 million as of July 30, up from $111 million in June and $63 million in May.Â
Polymarket recently closed a $70 million Series B funding round led by Peter Thielâs Founders Fund, which also included contributions from Ethereum co-founder Vitalik Buterin. The platform has onboarded MoonPay to expand its payment options.
Coinbase provides custody for DigitalXâs new Australian Bitcoin ETF
Coinbase has become a custody partner for a new spot Bitcoin exchange-traded fund (ETF) in Australia. DigitalX, the issuer of the DigitalX Bitcoin ETF (BTXX), selected the exchange following the fundâs launch on July 12, according to a recent announcement. Coinbase said it will deliver custody and âadvanced trading execution servicesâ for BTXX through its institutional-grade platform, Coinbase Prime.Â
The exchange has become a partner and custody provider for 10 spot Bitcoin ETFs and eight of the nine newly approved Ether ETFs in the United States. Large holders of BTC are among Coinbaseâs custody clients, including the Grayscale Bitcoin Trust and BlackRock's iShares Bitcoin Trust.
Before you go: In an exclusive interview with Cointelegraph, independent presidential candidate Robert F. Kennedy, Jr. explains why he believes integrating Bitcoin into US reserves is the only way to preserve the dominance of the dollar.
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