The government of Palau is set to launch a pilot project for a U.S. dollar-backed stablecoin, the Palau Stablecoin (PSC), which will be issued on the XRP Ledger. The stablecoin’s initial release will see PSC disbursed to government employees.

Seychelles-based cryptocurrency exchange KuCoin has recently denied it has any large-scale staff layoffs in the pipeline, and instead referred to headcount changes as routine organizational adjustments.

Big four accounting firm Deloitte is set to enhance its clients' blockchain tracking capacities through a new strategic partnership with Chainalysis, a leading name in the crypto analytics field.

Top stories in the Crypto Roundup today:

• Palau Launches U.S. Dollar-Backed Stablecoin Pilot on Ripple’s CBDC Platform
• KuCoin Refutes Allegations of Large-Scale Staff Reductions
• Deloitte Partners with Chainalysis to Boost Blockchain Tracking for Clients
• Stablecoin Trading Volumes Rise for First Time Since March

Palau Launches U.S. Dollar-Backed Stablecoin Pilot on Ripple’s CBDC Platform

The government of Palau is set to launch a pilot project for a U.S. dollar-backed stablecoin, the Palau Stablecoin (PSC), which will be issued on the XRP Ledger. The stablecoin’s initial release will see PSC disbursed to government employees.

The release comes after days of testing with volunteers making purchases with various devices. The stablecoin, nicknamed the Kluk, is the latest project that runs on the Ripple central bank digital currency (CBDC) platform that launched in May.

When the platform launched, Ripple said it was in negotiations with more than 20 global governments on issuing their central bank digital currencies. Ripple’s partnership with Palay, however, predates the platform’s launch, as it was announced back in 2021.

Located amidst the islands of the Oceania region in the Pacific Ocean, Palau is a tiny island nation home to just over 18,000 residents. Notably, Palau employs the U.S. dollar as its national currency and has a digital residency program.

KuCoin Refutes Allegations of Large-Scale Staff Reductions

Seychelles-based cryptocurrency exchange KuCoin has recently denied it has any large-scale staff layoffs in the pipeline, and instead referred to headcount changes as routine organizational adjustments.

While not entirely refuting the possibility of some job cuts, KuCoin's CEO, Johnny Lyu, challenged the framing of these organizational reassessments as layoffs.

The cryptocurrency platform found itself under scrutiny after Colin Wu of Wu Blockchain tweeted allegations that KuCoin was planning to reduce its workforce by 30%, attributing the potential cuts to a rigorous know-your-customer (KYC) policy, which he claims has been eroding the firm's profitability.

Wu's assertions, which he maintains were confirmed by several KuCoin employees, linked the initiation of the KYC policy to a lawsuit filed by the U.S against the exchange. In March, New York Attorney General Letitia James accused KuCoin of violating securities and commodities laws.

In an attempt to dispel the growing whispers about the firm's purportedly beleaguered status, Lyu pointed to a report KuCoin issued earlier this month as evidence the exchange keeps growing. The report mentioned the exchange added 300 employees in the first half of the year.

Deloitte Partners with Chainalysis to Boost Blockchain Tracking for Clients

Big four accounting firm Deloitte is set to enhance its clients' blockchain tracking capacities through a new strategic partnership with Chainalysis, a leading name in the crypto analytics field.

This collaboration, announced at a Chainalysis conference in Washington D.C., leverages Chainalysis' blockchain data sets, analytics software, and training programs to support Deloitte's clientele with their requirements in the spheres of crypto forensics, investigation, and compliance.

Thomas Stanley, President and Chief Revenue Officer of Chainalysis, said the partnership is focused on shared clients, which include regulators, law enforcement agencies, and financial institutions.

The initial implementation will be in the United States, taking into account the stage of technology adoption by these agencies and institutions and the overlapping client base.

A document on the alliance that Deloitte shared reveals some of the challenges faced by government agencies, which include digital assets being used to obfuscate transactions and launder illicit proceeds. Moreover, challenges are presented by the international regulatory landscape that hinders the procurement of information from foreign exchanges.

The partnership with Chainalysis is touted to help tackle these hurdles, potentially aiding in the identification of actors involved in illicit activities, and tracing fund flow to high-risk or sanctioned entities.

Stablecoin Trading Volumes Rise for First Time Since March

Stablecoin trading volumes experienced a notable uptick in June, registering a 16.6% increase to reach $482 billion. This upswing in trading activity and market optimism followed the submission of spot Bitcoin ETF filings by several traditional finance behemoths including giants BlackRock and Fidelity.

June's surge marked the first monthly rise in stablecoin trading volumes since March 2023, and as of July 16 the trading volume of stablecoins on centralized exchanges had already reached $219 billion.

Dig deeper into the stablecoin sector through CCData’s latest Stablecoins & CBDCs report.

State of the Crypto by Top Tier Exchange Volume

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