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The dominance of stablecoins pegged to the U.S. dollar has been tested in the past month. The recent SEC crackdown on BUSD showed that tokens pegged to fiat currencies aren’t immune to government intervention, especially in the U.S., prompting many to pull their funds out.
In response to this industry development, 15 companies issuing 20 different stablecoins have formed a new industry body representing the market. Called the Stablecoin Standard, the group is set to launch in the coming weeks and work on creating a set of standards that promotes consumer confidence.
Christian Walker, the founding partner of the Stablecoin Standard, told CryptoSlate that the group first started as an organic collaboration between various under-represented non-U.S. dollar stablecoins.
“In the summer of 2022, a small but intentional group of stablecoin projects started talking and swapping best practices. Since then, we have grown to a community of 20 different currencies.”
Walker, the head of partnerships at poundtoken.io, the first regulated GBP stablecoin issuer, noted that the group will represent “the true international diversity of stablecoins present today.”
“Although 99% of the $145 billion global stablecoin market-cap is currently tied to the US Dollar, recent developments have shown how important it is for this to change.”
The group will accredit various stablecoins and their issuers with the Quality Badge showing they comply with the minimum industry standards. This is set to promote consumer confidence as it showcases the various use cases for non-U.S. dollar stablecoins, Walker said.
The Stablecoin Standard currency consists of cryptocurrencies pegged to the euro (EUR), U.S. dollar (USD), Great British pound (GBP), Japanese yen (YEN), Chinese yuan (CNY), Singapore dollar (SGD), Canadian dollar (CAD), Hong Kong dollar (HKD), Australian dollar (AUD), Indonesian Rupiah (IDR), New Zealand dollar (NZD), Turkish lira (TRY), Brazilian real (BRL), South African rand (ZAR), Chilean peso (CLP), Argentine peso (ARG), Swiss franc (CHF), Peruvian sol (PEN), Icelandic krona (ISK), and Nigerian naira (NGN).
Posted In: Adoption, Stablecoins
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