Stable Standard - Week of January 13, 2025
Solana's stablecoin surge, Nubank's USDC push in Brazil, new stablecoin infrastructure from 1Money and Tether, plus insights from Bridge's founder
Solana Stablecoin Supply Hit ATH
Stablecoin supply on the Solana blockchain has reached new highs, surpassing $7 billion, with a notable surge of over $1 billion in USDC minted just within a two-day period. This milestone comes as part of a broader trend where the stablecoin supply on Solana has doubled in recent months, with USDC representing more than 80% of the total stablecoin supply on the network. Much of this new USDC growth has stemmed from increased memecoin trading via applications such as Jupiter, Raydium, and Orca.
Nubank Launches 4% USDC Yield Program
Nubank, a major Brazilian fintech company, has expanded its USDC rewards program to all Nubank crypto users, offering a 4% annual yield on holdings of 10 USDC or more following a successful pilot program. This expansion makes dollar-denominated savings accounts accessible to 92 million Brazilian customers, offering better returns than typical U.S. bank rates. The program's popularity is evident in Nubank's 2024 metrics: USDC holdings increased tenfold, with over half of new Nubank Crypto users selecting USDC as their first digital asset.
New Funding Rounds and Product Launches
1Money has emerged from stealth with a $20 million seed funding round from investors including F-Prime Capital, Galaxy Ventures, and Hack VC. They are developing a Layer 1 blockchain protocol specifically designed for stablecoin payments, with plans to launch in Q2 2024.
Tether has launched USDT0, a new initiative that enables USDT to move seamlessly across different blockchain networks using LayerZero under the hood. This is Tether’s response to Circle’s CCTP protocol, which allows for USDC transfers between blockchains.
Unchained Podcast: Behind the Scenes of Building Bridge
On the latest episode of the Unchained Podcast, Laura Shin sits down with Zach Abrams for a deep dive into building Bridge, the stablecoin infrastructure company that Stripe just acquired for $1.1B. Zach opens up about building Bridge through crypto's most turbulent times - from Terra's collapse to FTX's downfall and the SVB banking crisis - while tackling the complex challenges of building compliant crypto payment rails. The conversation covers everything from Bridge's successful API adoption to broader industry questions, like whether stablecoins will consolidate around a few major players and if the U.S. dollar will maintain its dominance in the digital currency landscape.