Fed Governor: Stablecoins Boost Dollar's Global Role; Robinhood's Crypto Revenue Surges 700%

Federal Reserve Governor Christopher Waller has highlighted the potential of stablecoins to strengthen the U.S. dollar's global role. In remarks prepared for a conference in San Francisco, Waller noted that stablecoins could bolster the dollar's position if they have solid business use cases and operate within a cohesive regulatory environment.

Waller emphasized the need for a U.S. regulatory and supervisory framework that directly addresses stablecoin risks. He suggested that such a framework should allow both non-banks and banks to issue regulated stablecoins and consider the effects of regulation on the payments landscape. Waller also pointed out that stablecoins are subject to run risk, and the emergence of different global stablecoin regulatory regimes could create potential conflicts and hinder the scalability of U.S. dollar stablecoins.

Meanwhile, popular trading platform Robinhood reported a robust fourth-quarter performance, with revenue rising 115% year-over-year to $1.01 billion. The growth was largely driven by a 200% surge in transaction-based revenue, boosted by an extraordinary 700% increase in crypto-related revenue. This strong performance has heightened optimism surrounding Coinbase, as both platforms cater to a similar client base and receive most of their revenue in trading fees.

The Cboe BZX Exchange has filed with the U.S. Securities and Exchange Commission to allow staking of ether for the 21Shares Core Ethereum ETF. The filing outlines the proposed amendment to the ETF's documentation, designed to allow the fund to stake its ether holdings, which would generate revenue by helping secure the Ethereum blockchain. This move could pave the way for more widespread adoption of staking in the crypto industry.