Sam Bankman-Fried: FTX Plans to Launch Its Stablecoin

Last updated on November 17th, 2022 at 12:23 pm

The CEO of FTX, Sam Bankman-Fried, recently told The Big Whale that the cryptocurrency exchange FTX is working on launching a stablecoin.

Stablecoins are already available on other major cryptocurrency exchanges.

Binance, the largest cryptocurrency exchange in terms of trading volume, has its own stablecoin called Binance USD (BUSD). Coinbase, the largest cryptocurrency exchange in the United States, has launched a stablecoin called USD Coin (USDC) in partnership with the payment processing company Circle.

Bankman-Fried asserts that “it is very likely” FTX will issue a stablecoin. He claims that the exchange understands how to create one and is considering which party would be the best business partner.

According to Bankman-Fried, FTX is working “to offer the best possible trading platform accessible to all. ” He also mentioned that the company has been “dealing with the Commodity Futures Trading Commission (CFTC) on some of our products” this year.

Earlier this month, the crypto executive spoke at a Bipartisan Policy Center event in Washington, DC, where he advocated for stricter regulation of the crypto industry, particularly stablecoins.

“Right now, the regulatory oversight of [stablecoins] is extremely unclear, it’s extremely messy and there are a lot of cooks hovering around the kitchen, but there’s no head chef,” Bankman-Fried said.

Many cryptocurrency companies, including Voyager Digital, went bankrupt in May after the Terra stablecoin (UST) lost its peg to the US dollar. Bankman-Fried claimed that the market’s stability was partly due to FTX’s purchase of Voyager’s assets after the company declared bankruptcy.