FTX Chief Hints At Native Stablecoin Launch

A recent interview with Sam Bankman-Fried, the chief executive of FTX, revealed that the crypto exchange could roll out its own stablecoin soon, but it wanted to do so with a partner.

The billionaire founder said that people would be hearing about it from the company in the near future.

Stablecoins

As opposed to other cryptocurrencies like Bitcoin and Ethereum which tend to be volatile, a stablecoin is pegged to a fiat currency and this keeps its price stable.

The most renowned stablecoins are pegged to the US dollar, which includes the USDT of Tether and the USDC of Circle.

According to the CEO of FTX, the company possesses the know-how of making its own stablecoin, but it wanted to do this project with a partner.

Bankman-Fried said that they had not been actively working on it because they thought collaborating could turn out to be really powerful.

Therefore, they were trying to find partners and were excited about working on it. This came only a few days after he talked on Twitter about the ‘Second Greatest Stablecoin War’.

This talk had begun after the announcement of the crypto exchange Binance to auto-convert other stablecoins on its platform to its own native one called Binance USD (BUSD).

He had also noted at the time that stablecoins could generate more revenue because interest rates have now turned positive.

He also said that FTX was one of the biggest players in the stablecoin ecosystem that was still unaligned.

Fundraising and acquisitions

The CEO also confirmed in the interview that the exchange was contemplating doing another fundraising round, which would give its acquisition spree a boost.

FTX currently has a cash position between $1 billion and $4 billion and the chief executive said that it could make medium and small-sized acquisitions.

He added that if they wanted to make bigger acquisitions and did not want to spend all their cash, then doing a fundraising round made sense.

The top executive stated that while they were looking at potential acquisitions, they were also looking at the possibility of raising funds.

Other details

Bankman-Fried was also asked if FTX was considering acquiring Robinhood, as rumors about the company purchasing the trading app had been circulating earlier this year.

The crypto boss said that there was no deal on the table. He stated that they could acquire a company like Robinhood, but they were not considering it currently.

He stated that their goal was to grow organically for now. He was also questioned about whether FTX would follow in the footsteps of Binance and set up headquarters in France.

Bankman-Fried responded that the French did make a good choice for European headquarters, considering that they wanted a place in central Europe.

This applied to the city not just in terms of being central when it comes to location, but also in terms of the role it plays.

During the crypto winter, many crypto exchanges have chosen to expand their operations to other countries, including the Coinbase exchange.