- DeFi Technologies (DEFTF, Financial) partners with Fire Labs to launch a regulated USD-backed stablecoin.
- The stablecoin will have a 105% reserve backing, exceeding regulatory requirements.
- Kraken joins as a strategic partner to provide institutional-grade infrastructure.
DeFi Technologies Inc. (DEFTF) has announced a strategic joint venture with Fire Labs to develop a regulated, USD-backed stablecoin. This stablecoin will be issued by a U.S. chartered bank, marking a unique entry into the Real-World Asset (RWA) sector. Significantly, the stablecoin will have a 105% reserve backing, which exceeds typical regulatory demands, ensuring heightened stability and trust.
In addition to the joint venture, DeFi Technologies has acquired a 19.5% stake in CH Technical Solutions SA, expanding its ecosystem in the digital finance landscape. This initiative aligns with the pending GENIUS Act, a U.S. regulatory bill expected to provide clear guidelines for fiat-backed stablecoins issued by regulated institutions.
Kraken, a major cryptocurrency exchange, will serve as a strategic integration partner through its Kraken Embed platform. This partnership facilitates seamless, regulated access to the stablecoin for institutional platforms, leveraging Kraken's robust infrastructure to encourage adoption.
The stablecoin's launch is strategically timed with the stablecoin sector's market cap reaching approximately $225 billion in early 2025, highlighting substantial growth and demand. DeFi Technologies plans to generate revenue through trading fees, yield participation, and by integrating the stablecoin across its subsidiaries, including Valour, Stillman Digital, and DeFi Alpha.
