FTX Stablecoin Is In The Works, Sam Bankman-Fried Says: Here's What We Know So Far

Zinger Key Points
  • Taking cue from other exchanges, FTX is developing its own stablecoin.
  • Sam Bankman-Fried ruled out complete acquisition of Robinhood trading app.
FTX Stablecoin Is In The Works, Sam Bankman-Fried Says: Here's What We Know So Far

Cryptocurrency exchange FTX is working on creating a stablecoin, or a crypto token whose value is correlated with another asset, according to the company’s CEO Sam Bankman-Fried.

In an interview with The Big Whale, Bankman-Fried says his recent acquisitions are aimed at stabilizing the ailing digital assets market and improving its position in the U.S..

He also expressed optimism about the future of cryptocurrencies given its increasing use cases due to an improvement in the underlying technology.

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Customers who use FTX's margin trading service can use a variety of U.S. dollar stablecoins as collateral.

TrueUSD TUSD/USD, USD Coin USDC/USD, Pax Dollar USDP/USD, Binance USD BUSD/USD, and HUSD/USD are all included in the FTX basket.

When asked about the future of the crypto industry, Bankman-Fried said:

“I honestly don't know. I can't say what exactly will happen from a macroeconomic point of view in the coming months. It all depends on the interest rates. If there is a real rise in interest rates, a lot could happen. There could be further sharp movements in the markets.

But overall, I'm pretty optimistic about the future of cryptos because the industry keeps growing. There are more and more use cases, the technology is improving and the regulation is gradually being put in place.”

Asked to comment on the recent acquisitions of FTX, the CEO said, “Some of these transactions have helped stabilize the. But beyond that, these acquisitions will allow us to strengthen our position in the United States and continue to gain market share.”

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While Bankman-Fried has already bought a 7.6% stake in the retail trading app Robinhood, he refused to elaborate on whether he was considering a purchase of the entire company.

Amid a bear market, FTX has been investing, making several sizable purchases, including an agreement to buy the crypto lending company BlockFi for up to $240 million.

Benzinga followed up with Bankman-Fried for additional commentary, but has not heard back.

FTX is not the first exchange to consider developing a stablecoin

Crypto exchange Binance, in 2019, began issuing Binance USD.

The growth of Tether USDT/USD, the biggest stablecoin with a market worth of $68 billion, also shows how stablecoins can succeed even in the face of regulatory scrutiny.

The Hong Kong holding company iFinex, which also runs the cryptocurrency exchange Bitfinex, is the owner of Tether.

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Posted In: BenzingaBitcoinEthereumFTXRobinhoodSam Bankman-FriedCryptocurrencyM&ANewsEntrepreneurshipMarketsTechGeneral

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