This Week Summary on Stablecoin News:
- Tether eyes U.S. payments market with potential point-of-sale system
- New York Attorney General urges Congress for comprehensive crypto regulations
- FDUSD confirms full backing and sues Justin Sun for defamation, denying $500M misappropriation claims
Tether's Ambition: Entering U.S. Retail Payment
Tether, issuer of the world's largest stablecoin USDT, is exploring the development of a blockchain-based payment network in the United States. CEO Paolo Ardoino envisions a system that could rival traditional point-of-sale solutions like Square, aiming to position stablecoins as a viable alternative to checking accounts for U.S. consumers. With $20 billion in undistributed profits, Tether has the financial capacity to pursue this expansion. However, widespread adoption remains a challenge due to the dominance of bank-held dollars in consumer transactions.
This move aligns with anticipated U.S. legislation on stablecoins and increasing competition from rivals such as Circle, which is preparing for a U.S. IPO. Tether's expansion plans continue despite unresolved criticisms, including the lack of a full audit of its reserve assets. The company plans to proceed once U.S. regulations become clearer.
New York Attorney General Calls for Federal Crypto Regulation
New York Attorney General Letitia James has called on U.S. lawmakers to establish a comprehensive federal regulatory framework for cryptocurrencies, emphasizing the urgent need to protect digital asset investors from fraud and scams. In a letter addressed to congressional leaders, James advocated for mandatory registration of crypto companies with a federal agency and the establishment of minimum listing standards for crypto tokens.
Her appeal aligns with ongoing congressional efforts to introduce regulations for stablecoins. James also recommended that stablecoin issuers maintain a U.S. presence and hold reserves in U.S. banks in cash equivalents such as U.S. Treasuries. This initiative follows the digital asset industry's increased influence in Washington, underscored by heavy financial support for pro-crypto political candidates in recent elections.
FDUSD Stablecoin Affirms Full Backing Amid Justin Sun's Allegations
First Digital Labs has released an attestation report confirming that its FDUSD stablecoin is fully backed by reserves, countering recent fraud allegations made by Tron founder Justin Sun. The report, dated April 14, 2025, states that the total supply of 2.58 billion FDUSD tokens is matched by equivalent reserves, including over $1.74 billion in U.S. Treasury bills and $603 million held in overnight repurchase agreements. Additional reserves are distributed across fixed deposits in multiple jurisdictions, all held in bankruptcy-remote accounts, ensuring separation from corporate funds.
Sun had accused First Digital Trust of misappropriating nearly $500 million, alleging that funds were diverted through an altered wallet address and partially deposited into a Hong Kong bank account named "Glass Door." In response, First Digital Trust has denied the allegations and filed a defamation lawsuit against Sun in Hong Kong's High Court, seeking to prevent further public statements and requesting retractions and compensation.
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This Weekly Summary is prepared by brava.xyz.
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Citations:
https://www.axios.com/2025/04/08/tether-stablecoin-blockchain-payment-network?utm_source=chatgpt.com
