The Weekly Bull-etin: No. 19

Welcome to Mu Digital's Weekly Bull-etin! We are bringing you the latest news and insights into real world assets ("RWA"), tokenization, stablecoins and yield products in the Web3 and Decentralized Finance ("DeFi") industry. Follow us to keep updated!

Mu-sings from the Editor

Gm,

This week, U.S. Treasury Secretary Janet Yellen and the Financial Stability Oversight Council (FSOC) highlighted the potential risks posed by stablecoins. Yellen emphasized that stablecoins, without proper risk management standards, could destabilize the financial system. The FSOC echoed these concerns, noting the market's heavy concentration and the potential for significant disruption if a dominant firm fails.

Yellen called for comprehensive federal legislation to regulate stablecoin issuers, stressing the need for oversight to match innovation. The FSOC urged the U.S. government to act quickly and implement a regulatory framework to address risks and protect investors.

Meanwhile, progress in stablecoins continues. VanEck-backed Superform launched a DeFi product for 'intelligent' USDC yield, and the UAE's newest stablecoin, AE Coin, received approval from the Central Bank.

Until next time,

LA Yepez

What’s Mu?

1️⃣ FSOC warns stablecoins remain a ‘potential risk’ to financial stability

2️⃣ US Treasury Secretary Janet Yellen Issues Caution on Crypto and AI

3️⃣ VanEck-Backed Superform Launches DeFi Product for 'Intelligent' USDC Yield

4️⃣ UAE’s newest stablecoin gets nod from Central Bank

5️⃣ Moody’s Analyst says Disintermediation can lower cost of tokenized bonds

Charts of the Week

Onchain Yield Alternatives

AAVE yields dropped to 8% as the inflow of capital has eased. Meanwhile, yields on US Treasuries, Delta neutral positions, and DAI have remained steady. In the current market, onchain native yield alternatives continue to be higher than US treasuries.

DeFi TVL Trends

DeFi Total Value Locked (TVL) has decreased by 4% to US$164 billion, marking the first decline after five consecutive increases. The decline was observed across most protocols, while Real-World Assets (RWAs) remained steady.

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