DTCC, a company at the heart of the U.S. financial markets, may launch its own stablecoin if regulatory conditions are met.
Stablecoins are gaining traction among top global financial institutions. On Thursday, June 12, the Depository Trust & Clearing Corporation, is reportedly exploring developing its own stablecoin.
According to company insiders, DTCC is prepared to move quickly into the stablecoin space once the U.S. enacts appropriate legislation. However, the firm has not issued an official press release confirming its plans, indicating it is waiting for regulatory clarity before taking action.
.S. lawmakers are currently reviewing two major stablecoin-related bills: the GENIUS Act and the STABLE Act. Both propose strict transparency and disclosure requirements, mandating that stablecoins be backed 1:1 by cash and other liquid assets.
While the proposed rules would place clear compliance obligations on issuers, they would also offer legal protection and regulatory certainty. As a result, many analysts expect that passage of these laws would pave the way for more established financial institutions to enter the stablecoin market.
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Global financial institutions join stablecoin rush
The move comes after Circle, the biggest stablecoin issuer in the U.S., went public in a successful IPO. The company delivered more than 271% in returns in less than one week of trading, and 4x returns to private investors like Sigil.
Issuers like Circle profit by investing their stablecoins with short-term Treasuries, which generate yields. The more stablecoins they issue, the bigger their profits are. For Circle, this translates into $3 billion in gross interest income.
This straightforward and lucrative revenue model is increasingly attractive to traditional financial institutions. Visa, MasterCard, and JPMorgan are among the big players that are exploring their own stablecoin launches.
Big tech companies are also exploring a similar move, and Apple, X, Google, and Airbnb are among the potential issuers. Most recently, Chinese tech giant Ant International has launched its own stablecoin bid on June 12, applying for licenses in Hong Kong, Singapore, and Luxembourg..
Read more: Interview | Polygon’s Gupta says ‘stablecoins are no longer an experiment’
