Sam Bankman-Fried of FTX Announces Plans to Launch Stablecoin
FTX CEO Sam Bankman-Fried has confirmed that the crypto platform is working on launching its own stablecoin.
In an interview with The Big Whale, Bankman-Fried said "it is very likely" FTX will launch a stablecoin, joining most other major exchanges in having launched a crypto token whose value is tied to fiat currencies. He added that they know how to create a stablecoin and are looking for the best partner to work with.
“Yes, it is very likely. We know how to create a stablecoin. We’re just thinking about the best partner to do it with. What I can tell you is that you’ll be hearing from us soon,” the billionaire said. “I think you’ll probably be hearing something from us on that in the not-too-distant future.”
A stablecoin is a cryptocurrency that strives to keep its price pegged to fiat currencies like the US dollar or the pound. The biggest stablecoins in terms of market capitalization are Tether’s USDT, Circle’s USDC, and Binance's BUSD, all of which are pegged to the US dollar.
The FTX chief noted that the crypto platform already has the know-how to launch its stablecoin, but they prefer to do it in partnership with another company in order to make it more powerful.
“We’ve held off on doing it because, I think to some extent, we think that cooperating on that can be really powerful and a lot of that ends with us trying to find the partners we’d be really excited to work with there,” said Bankman-Fried.
Bankman-Fried's stablecoin announcement comes just days after the CEO predicted the start of “the Second Great Stablecoin War” on Twitter. In an October 23 tweet, he said, "Thus begins the Second Great Stablecoin War. (The first one, fought in ~2018, ended with USDC and USDT edging out TUSD/GUSD/USDP.)"
The tweet was in
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