On the 27th of October, in a recent interview, the CEO of crypto exchange FTX, Sam Bankman-Fried, said that FTX could soon launch its stablecoin. He indicated that to launch a stablecoin, he would prefer to do so with a partner. In the interview, Sam said about creating an FTX stablecoin that he thinks you’ll probably be hearing something from them on that in the not-too-distant future.
The reason behind building a stablecoin is that stablecoin typically keeps its price to a fiat currency. For example, the most famous stablecoins in the market, such as Circle’s USDC and Tether’s USDT, are pegged to the U.S. dollar. While the more volatile cryptocurrencies like Bitcoin or Ethereum could not keep their price to a fiat currency.
FTX CEO also indicated that their firm already plans to make their stablecoin, but they would prefer it as a partnership. Sam said that they’ve held off on doing it because he thinks to some extent, they think that cooperating on that can be powerful. He also indicated that they would start their project after finding the partners they’d be excited to work with.
Sam’s company FTX’s moves to build a stablecoin came after he announced the start of the Second Great Stablecoin War on Twitter. This war was announced in response to Binance’s move to auto-convert other stablecoins into its stablecoin, BUSD. At that time, Sam realized that stablecoins offer more revenue, and that’s the reason which encouraged him to build his stablecoin.
Sam also said that FTX is probably one of the largest unaligned players in the stablecoin ecosystem. In the interview, Sam indicated that FTX is considering another fundraising round to fuel its stablecoin acquisition spree. Sam also showed their current cash position is between $1 billion and $4 billion. He said that FTX is positioned to make small and medium-sized acquisitions with this amount of cash.