FTX’s Sam Bankman-Fried Announces Plans to Launch a Stablecoin

Image credit: FTX

FTX CEO Sam Bankman-Fried has confirmed that the cryptocurrency platform is working on launching its own stablecoin.

In an interview with The Big Whale, Bankman-Fried said it is “very likely” that FTX will launch a stablecoin, joining most other major exchanges in launching a cryptocurrency token whose value is pegged to fiat currencies. He added that they know how to create stablecoins and are looking for the best partners.

“Yes, very likely. We know how to create stablecoins. We are just thinking about the best possible partners. What I can tell you is that you will hear from us soon,” the billionaire said . “I think you might hear from us in the near future.”

A stablecoin is a cryptocurrency that strives to peg its price to a fiat currency like the U.S. dollar or British pound. The largest stablecoins by market cap are Tether’s USDT, Circle’s USDC, and Binance’s BUSD, all of which are pegged to the U.S. dollar.

The FTX chief noted that the cryptocurrency platform already has the expertise to launch stablecoins, but they would prefer to partner with another company to make it stronger.

“We’re holding off on doing this because, I think at some point, we think the collaboration on this can be very strong, and a lot of it ends up being us trying to find partners that we’re happy to work with there,” Ban said. Kerman-Fried said.

The “Second Stablecoin War” is Coming

Days before Bankman-Fried announced the stablecoin, the CEO took to Twitter to predict the start of a “second great stablecoin war.” In a tweet on Oct. 23, he said: “This is where the second stablecoin war begins. (The first war ended around 2018, with USDC and USDT defeating TUSD/GUSD/USDP.)”

The tweet was in response to Binance’s automatic conversion of other USDC into its own stablecoin, BUSD. The move has led to a surge in BUSD supply, which recently topped $20 billion for the first time. In addition, the share of BUSD supply in the entire stablecoin market reached an all-time high of 15.48%.

Meanwhile, Bankman-Fried also revealed that they are considering another funding round for FTX to fuel its acquisition spree. He claimed that the exchange’s cash position of between $1 billion and $4 billion puts it “well-positioned to make small to mid-sized acquisitions.”

Source of information: Compiled from CRYPTONEWS by 0x information.The copyright belongs to the author and may not be reproduced without permission

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