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.

Further details were not available on the website, which is behind a paywall. A stablecoin is a crypto token whose value is tied to that of another asset.

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), Binance USD (BUSD) and HUSD.

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.