Erebor Bank: Free Stablecoin Deal Backfires
Erebor Bank lost on free Circle and Tether conversions as crypto trading firms arbitraged redemption fees and uneven liquidity in enterprise stablecoin adoption.
SourceAnalysis
Erebor Bank offered free stablecoin-to-cash conversions to attract crypto clients this year but absorbed losses after trading firms exploited the deal, highlighting how stablecoin redemption fees and uneven liquidity keep many tokens off exact $1 parity in practice and complicate enterprise stablecoin adoption.
Nick van Eck
@Nick_van_EckBringing the world’s money on-chain 💸 | Core contributor @withAUSD | prev General Catalyst
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