Phil Potter decides to collaboratively launch “a clearinghouse for stablecoins” with the well-known crypto finance firm, XBTO. He worked as an executive earlier at Bitfinex and Tether.
It aims to address the patchy liquidity, stability, and accessibility that is “preventing the stablecoin market from reaching critical mass”. The platform currently remains under development.
Stablehouse would assume the position of a traditional central clearing counterparty. Otherwise referred to as CCP that would permit the trading of stablecoins at “fixed minimal cost and liquid market price”. It will include trading between USDT, PAX, TUSD, USDC, and DAI, as well as many more selections in the future
XBTO’s founder, Philippe Bekhazi, will be spearheading this venture and will assume the position of the interim CEO. Its advisory board boasts of Potter, as well as David Namdar, a founding partner of Galaxy Digital and SolidX Partners; and Samson Mow, chief strategy officer at Blockstream.
The collaborators are hoping to provide part of the infrastructure which is a vital component for the ‘mass adoption” of cryptocurrencies and stablecoins.
XBTO founder Bekhazi stated that:
“The stablecoin market at the moment is inefficient and has various disparate stablecoins, with users needing to transact several times with different parties to exchange one stablecoin for another,”
He further went on to add that:
“Stablehouse will address this by serving as a centralized platform that gives issuers, holders and exchanges certainty over access and liquidity, creating enhanced confidence for investors, developers and merchants.”
According to the announcement, Bermuda is selected as the base of operations. Stablehouse.io will be applying for a digital asset business license from the Bermuda Monetary Authority.
With the stablecoin use case in high demand currently, Bitfinex and Tether Ltd, which have overlapping management and owners, have suffered a serious dent to their public image due to the USDT stablecoin. This ended when USDT had a falling out with dollar parity. Also, the exchange rate hit a severe low of $0.85.
Mow attempted to subdue the impact of the crisis by defending the company with the following statement: “The image problem for Tether is manufactured. They are probably the most reliable and liquid stablecoin on the market.”