Crypto Exchange FTX Is Working on Creating a Stablecoin: Report

Cryptocurrency exchange FTX is working on creating a stablecoin, CEO Sam Bankman-Fried told The Big Whale in an interview.

Bankman-Fried said in the interview “it is very likely” FTX will create a stablecoin, a crypto token whose value is tied to that of another asset. The exchange knows how to create one and is thinking about the best partner to work with, he said. He also hinted that an announcement will come soon.

However, in a follow-up tweet on Friday, Bankman-Fried noted that FTX is still determining a potential pathway.

“Eh to clarify: we are figuring out what we’re doing on stablecoins; it could be anything or nothing, and could *or could not* involve partnerships, issuance, hula hoops, etc. (One of those is less likely than the others.),” he tweeted.

FTX currently offers margin trading that allows customers to use a basket of U.S. dollar stablecoins as collateral. The basket includes trueUSD (TUSD), USD coin (USDC), Pax dollar (USDP), HUSD and Binance USD (BUSD). Rival exchange Binance started issuing Binance USD in 2019.

The rise of tether (USDT), which is the largest stablecoin and has a market cap of $68 billion, also provides a use-case of how stablecoins can thrive even under regulatory scrutiny. Tether is owned by iFinex, a Hong Kong holding company that also owns crypto exchange Bitfinex.

FTX has been spending during the current bear market, making several large acquisitions including a deal to buy crypto lending business BlockFi for up to $240 million. While Bankman-Fried bought a 7.6% stake in retail trading app Robinhood (HOOD) in May, FTX is not interested in acquiring the entire company, he said in the interview.

FTX did not immediately respond to CoinDesk’s request for comment.

UPDATE (Oct. 27, 11:38 UTC): Adds interview detail in second paragraph.

UPDATE (Oct. 28, 14:11 UTC): Adds Twitter comment from Sam Bankman-Fried.

UPDATE (Oct. 28, 14:11 UTC): Adds Twitter comment from Sam Bankman-Fried.