Today in crypto, USDC’s market cap is approaching a record $80 billion amid turmoil in Dubai’s real estate market, a US federal appeals court knocks back Custodia Bank’s request to review the Federal Reserve’s authority in granting master accounts. Meanwhile, the Ethereum foundation outlines how it will balance core values with ecosystem development.
USDC market cap nears record $80B amid ‘capital flight’ in UAE: Analyst
The market capitalization of the USDC stablecoin is approaching a record high near $80 billion as demand surges in the Middle East, with one analyst linking the spike to capital flight from the United Arab Emirates.
According to data from CoinMarketCap, USDC (USDC)’s circulating supply has risen to roughly $79.2 billion, marking a new all-time high for the dollar-pegged stablecoin. The stablecoin’s market cap previously hit a high of below $79 billion in December last year.
The increase comes after supply expanded by billions of dollars in recent weeks. The stablecoin’s market cap stood at just over $70 billion in early February and at $75 billion earlier this month.
Self-proclaimed Dubai-based analyst Rami Al-Hashimi claimed the surge reflects growing demand from investors seeking to move funds out of traditional markets. In a Friday post on X, Al-Hashimi said over-the-counter (OTC) desks in Dubai have struggled to meet demand for the stablecoin.
Federal court ends Custodia Bank's legal bid for a master account
A US federal court has rejected Custodia Bank’s final attempt to challenge the Federal Reserve’s authority over granting master accounts — effectively ending the crypto-focused bank’s five-year-long battle for direct access to the central bank’s payment system.
The US Court of Appeals for the Tenth Circuit said in a filing on Friday that it wouldn’t hear Custodia's final appeal on that point in a 7-3 vote.
Custodia first applied for a master account in October 2020, which allows financial institutions to hold reserves directly at the Federal Reserve and access its payment rails, enabling them to settle transactions without relying on intermediary banks.
After the Fed rejected its master account application, Custodia turned to the courts, arguing the Monetary Control Act entitles state-chartered banks to access Fed services and therefore a master account.
However, the multiple courts have now ruled that the Fed retains discretion over whether to grant master accounts.
Custodia’s blow comes as Kraken became the first crypto platform to receive a master account from the Federal Reserve Bank of Kansas City on March 4.
Ethereum Foundation outlines new mandate for its role
The Ethereum Foundation published a new document outlining its role in the ecosystem and its long-term priorities, as the Ethereum network faces growing questions about decentralization and scaling.
According to the mandate, the foundation will focus on protecting Ethereum’s core values, including censorship resistance, privacy and open-source development, rather than acting like a traditional tech company chasing growth or product metrics.
The foundation also said its goal is to make itself less necessary over time. It described a “walkaway test,” meaning the Ethereum network should eventually be strong enough to operate even if the foundation disappeared.
The announcement follows recent comments from Ethereum co-founder Vitalik Buterin about the network’s long-term direction, including concerns that Ethereum could become too dependent on layer-2 networks and the need to preserve principles like decentralization and censorship resistance.