Former Tether Exec Joins Soon-To-Be-Launched Stablecoin Clearinghouse

https://www.nytimes.com

Former Bitfinex Chief Strategy Officer and Tether (USDT) co-founder Phillip Potter has been appointed as the latest advisory board member of the soon-to-be-launched first-of-its-kind stablecoin clearinghouse, in an effort to catalyze the development of the market, per a press release published February 5.

Developed by crypto finance firm XBTO Ventures and XBTO International, Stablehouse.io will serve as a central counterparty clearing (CCP) for stablecoins, a type of digital asset meant to hold stable values, either by being notionally pegged to fiat or via an algorithmic peg, thereby increasing price stability

In exchange for serving as a centralized platform for facilitating stablecoin trading, the clearinghouse will charge investors a fixed fee for every transaction. As it stands, the clearinghouse supports multiple stablecoins, including USDT, TUSD, GUSD, PAX, as well as DAI, with plans to further expand support to other stablecoins in the future.

Stablehouse.io will be led by XBTO founder Philippe Bekhazi who will serve as the project’s interim CEO, alongside several of its advisory board members, including Blockstream CSO Samson Mow and Galaxy Digital and SolidX Partners co-founder David Namdar.

At present, Stablehouse.io is working on launching operations in Bermuda and is reportedly securing a digital asset business license from the Bermuda Monetary Authority.

As the burgeoning asset class increasingly gains traction in the crypto industry, with most prominent industry players viewing it as the catalyst of the emerging tokenized economy, a slew of new stablecoins has been launched in the last year concomitant with the rising number of digital currency exchanges adding support for stablecoins.

Prior to joining Stablehouse.io, Potter also served as CEO of two of the most controversial startups in the field, Bitfinex and Tether. In December 2017, both firms have been issued subpoenas by U.S. regulators, with most speculating that the regulatory move stemmed from Tether’s questionable claims that the stablecoin is pegged to the U.S. dollar on a 1:1 ratio.

Further raising suspicions among regulators was Tether’s previous move to split with a third-party auditor in January. In an attempt appease increasing speculations, Tether subsequently released an unofficial audit in June. On top of its regulatory hurdles, Tether has also faced a number of banking setbacks, with the U.S. Department of Justice investigating both firms on grounds of purported market manipulation.

Bitfinex, on the other hand, has also faced multiple challenges, particularly with banking relationships in previous years, prompting the firm to issue an official statement in October last year, in an effort to disprove rumors of insolvency.