Ondo Finance, a tokenized financial product platform, has partnered with Web3 interoperability platform Axelar to launch the cross-chain solution Ondo Bridge, inspired by Circle's cross-chain transmission protocol (CCTP). Ondo Bridge allows users to issue native tokens on Axelar-supported blockchain networks, including Ondo's tokenized bill USDY. Axelar's programmable cross-chain platform will enable Ondo to automatically manage USDY supply. The initial deployment will be done through Axelar-based cross-chain liquidity router Squid. It is worth mentioning that Axelar played an important role in the development of Composable USDC by combining its General Message Passing technology with Circle's CCTP. According to reports, Axelar seamlessly connects over 50 blockchain networks and has become a partner of multiple mainstream RWA issuers. Its decentralized security and permissionless programmability have been recognized by large enterprises such as Microsoft, making it an important tool for integrating on-chain and off-chain systems. Its supporters include Binance, Coinbase, Dragonfly, Galaxy, and Polychain, among others.

According to DefiLlama data, the current total market value of stablecoins is $125.703 billion, an increase of 0.72% from the past week. USDT accounts for 69.02% of the total market value of stablecoins.

Moody's Head of DeFi Rajeev Bamra considers the role stablecoins play cryptocurrency markets, and the risks posed by "depegging" events.

Matthew Long, Director of Payments and Digital Assets at the Financial Conduct Authority (FCA) in the UK, stated that the country's financial regulators will not deviate from their tough stance on cryptocurrencies when regulating stablecoins under proposed rules. Long said, "Ultimately, we will set standards, those that meet the standards will be allowed in, those that don't won't, and we won't apologize for having those high standards." Long explained that in order to regulate stablecoins in the country, the FCA will work with the Bank of England (the UK's central bank) to develop strict standards for stablecoin issuers. The FCA will observe the market and pay attention to the emergence of "systemic" stablecoins that are widely used, and the two regulatory bodies plan to reach a formal agreement on their respective roles.

The market for altcoins has rebounded significantly since last weekend. The interest rate for borrowing stablecoins denominated in US dollars (such as USDC and Tether) on the Aave platform has skyrocketed to over 10%. Aave is the largest lender in the DeFi project, allowing peer-to-peer encrypted cryptocurrency transactions without intermediaries. The higher interest rate means that more traders are willing to pay to borrow stablecoins, indicating that they are increasing their cryptocurrency bets. The lending rates for DeFi and the financing rates for perpetual contract markets continue to rise, creating arbitrage opportunities for traders between the two. Spencer Hallarn, a derivatives trader at cryptocurrency investment company GSR, said: "Aave and perpetual contract rates should typically have some correlation, as you can arbitrage between the two. Overall, this indicates demand for holding cryptocurrency in the derivatives market."

Moody's Analytics has reported that large cap stablecoins, which have a market capitalization of over $10 billion, have experienced 609 depegs in 2023 so far, compared to 707 in 2022. These depegs, or fluctuations of more than three percent in a day against their fiat peg, are common and can be triggered by macro and coin-specific factors. Notable stablecoin depegs this year include Circle's USDC and Real USD. Moody's new Digital Asset Monitor will track 25 fiat-backed stablecoins and signal the probability of a stablecoin depeg in a 24-hour time horizon.

On November 2nd, at the Kun & Hashkey Exchange strategic cooperation signing ceremony, Dr. Xiao Feng, founder of Hashkey Group, stated in a speech that Hashkey Group will jointly issue stablecoins with Circle Technology and ZhongAn Bank in Hong Kong.

According to CoinDesk, the UK government released its final rules on cryptocurrencies and stablecoins on Monday. The government plans to introduce cryptocurrency regulation in stages, starting with fiat-backed stablecoins, and then adding other cryptocurrency-related areas including algorithmic stablecoins.The document states that legislation on fiat-backed stablecoins is planned to be introduced in early 2024. <br>

Borderless by design, these modern digital tokens can make cross-border commerce much cheaper and easier.

Algorithmic stablecoins, as their name implies, are cryptocurrencies that use algorithms to maintain a stable value instead of being backed up by any sort of reserve asset as collateral. However, in reality, some algorithmic stablecoins have struggled to maintain a stable peg, while others have failed catastrophically.