Fed Endorses Prediction Markets as Stablecoins Gain Momentum – BitRss

The Federal Reserve’s recent support for prediction markets marks a notable shift in its approach to crypto-related financial tools, with officials suggesting these markets could serve as valuable indicators for economic sentiment. Meanwhile, Minneapolis Fed President Neel Kashkari reiterated his critical stance on cryptocurrencies and stablecoins, instead highlighting artificial intelligence as a more promising technological development. This divergence in perspectives comes as Coinbase CEO Brian Armstrong expresses strong confidence in stablecoins becoming the default payment method for billions of AI agents, signaling growing institutional interest in the sector.
Stablecoin activity continues to accelerate, with USDC ($1.00 · Live) transaction volume increasing 20-fold over 18 months, predominantly processed through Polygon and Base networks. The stablecoin market is also seeing potential regulatory developments, as the White House considers limited stablecoin rewards during ongoing discussions with crypto and banking stakeholders. In the lending sector, Nexo has reached an all-time high of $863 million in cumulative credit withdrawals as Bitcoin stabilizes around current levels. Additionally, fintech company Newity has secured $11 million in funding to bring small business lending onto blockchain infrastructure, while Maya Crypto expands its token offerings to enhance platform functionality.
Market sentiment in the past 6 hours reflects cautious optimism as regulatory signals and institutional adoption narratives drive renewed interest in stablecoin infrastructure and blockchain-based financial services.

Market Context:

bitcoin, stablecoin, expands

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