DeFi DeBrief #10: What inflation? 😎

Welcome to issue #10 of the DeFi DeBrief, your weekly digest of the biggest news in DeFi.


  • Crypto shrugs off latest inflation numbers
  • Mastercard brings crypto trading to banks
  • Tether shores up its reserves


Onwards 👇

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Inflation figures just a bump in the road 🚧

Another CPI index, another ‘higher than expected’ outcome. U.S. inflation hit 8.2% in September, which, despite dropping from August’s 8.3%, was still higher than analysts had hoped.

Food and energy prices are driving the upwards trend, but that’s not to say things look rosy elsewhere. Core inflation (which excludes food and energy) increased 6.6% YoY, the highest such rise since August 1982.

Why should you care?

Inflation figures drive the Fed’s policy, and until we see a reversal of fortunes, we’re unlikely to see interest rates settle (let alone fall). In fact, markets predict a 94% likelihood of another 0.75% rate hike come November 2nd.

The expectation is that risk-on assets will struggle for as long as interest rates rise. That said, while BTC and ETH experienced sell-offs when the CPI figures came out, both bounced back in a heartbeat. A positive signal?

The coming weeks will reveal all.



Mastercard banks on crypto trading demand 💭 

Mastercard, the world’s second-largest payments processing firm, is going all-in to help banks bring cryptocurrency trading directly to clients, acting as the bridge between crypto trading platform Paxos and financial institutions. 

Many consumers want to dip their toes into crypto but worry about drowning in murky regulatory water. Mastercard and Paxos will handle compliance and security, enabling banks to offer the trading service, all starting in Q1 next year.



Tether waves goodbye to commercial paper 👋

The biggest stablecoin by market cap, Tether, says it has eliminated commercial paper from its stablecoin reserves, drawing the curtain on a controversial strategy for backing its token supply.

Tether now uses US Treasury Bills (short-term, government-issued debt securities), helping establish more trust in USDT while doubling down on its commitment to back the stablecoin with more secure assets.



Five short reads catching our eye this week:

  1. Is Bitcoin now less volatile than stocks?
  2. Uniswap raises $165m at $1.6 billion valuation
  3. America’s oldest bank offers crypto custody to clients
  4. Wealth management a massive target for crypto
  5. Another $100m hack hits DeFi



  • BTC: $19,206.21 (0.30%, 7 days)
  • ETH: $1,296.07 (0.05%, 7 days)
  • TVL in DeFi: $53.24bn (4.27%, 7 days)
  • Fear & Greed: 23 (extreme fear)


*Data last updated at 08:00 on 19th October.



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