Latest news with #AndyBaehr
Yahoo
10 hours ago
- Business
- Yahoo
CoinDesk Indices, Sentora Unveil Stablecoin Overnight Rates to Mirror Money Market Tools
CoinDesk Indices and decentralized finance (DeFi) specialist Sentora are introducing a benchmark tied to overnight stablecoin lending rates, bringing on-chain markets one step closer to mainstream money markets. The CoinDesk Overnight Rates (CDOR) are designed to transform real-time borrowing activity into standardized rates, giving trading firms, exchanges, and protocol treasuries a way to hedge interest-rate exposure or fix funding costs over time, the companies said in a Tuesday press release. The benchmarks will initially draw from Aave lending pools for USDT and USDC, the two most widely used stablecoins. They are calculated and published daily, based on the platform's variable borrow rates. Stablecoins, a $250 billion class of digital tokens pegged to traditional currencies like the U.S. dollar, are key pieces of infrastructure underpinning the crypto economy. They are a popular vehicle for trading and on-chain transactions and are increasingly used for cross-border payments and foreign stablecoin adoption accelerates with more institutions and businesses getting involved, so the demand for sophisticated tools that mirror mainstream financial markets is growing. "Stablecoins are expected to grow into the trillions, but there is no institutional-grade money market for trading and hedging term rates," said Andy Baehr, the head of product and research at CoinDesk indices "CDOR rates provide a cornerstone element for the stablecoin rates markets, using the same conventions as traditional finance benchmarks, which support the largest derivatives markets in the world." Futures contracts that settle against overnight rates are also in the works, with Galaxy, FalconX, Flowdesk and Tyr Capital set to act as market makers, the press release said. "CDOR rates enable the creation of a broad range of financial derivatives that are currently missing in the crypto financial ecosystem," said Ed Hindi, chief investment officer at Tyr Capital. "This addition alongside a clearer regulatory environment should exponentially increase the interaction of institutional players with DeFi." 登入存取你的投資組合
Cision Canada
13 hours ago
- Business
- Cision Canada
CoinDesk Overnight Rates (CDOR) to Support Stablecoin Money Markets based on Aave
These first-of-kind money market rates transform Aave pool activity into conventional overnight rates to support interest rate derivatives and floating rate loans. NEW YORK, June 17, 2025 /CNW/ -- CoinDesk Indices, a leading provider of digital-asset benchmarks, in collaboration with Sentora, a pioneer in institutional DeFi solutions, today announced the launch of CoinDesk Overnight Rates (CDOR), the first benchmark interest rates that draw upon Aave's lending pools to provide standardized overnight rates for major stablecoins. CDOR to Support Industry Growth CDOR rates are designed to support markets for hedging funding costs, securing yields, and developing cross-currency rate strategies. Calculated and published daily, these rates are accessible to exchanges, market makers, protocol treasuries, and structured-product desks. Stani Kulechov, Founder of Aave Labs says,"CDOR is a new benchmark interest rate built on Aave's deep onchain liquidity. It provides a transparent, risk-free lending rate that unlocks new use cases for stablecoins, such as derivatives and fixed-income products, enabling more efficient, scalable, and automated financial markets." The first CDOR rates utilize activity on Aave v3's Core variable borrow pools for USDC and USDT. CoinDesk Indices has released a methodology that converts this on-chain activity into a historical daily (or "overnight") rate that can be aggregated over longer periods. These pools, whose rates react instantly to changes to supply and demand, are important facilities in decentralized finance that reflect activity of a large population of borrowers and lenders. Andy Baehr, CFA, Head of Product and Research, CoinDesk Indices says "Stablecoins are expected to grow into the trillions, but there is no institutional-grade money market for trading and hedging term rates. CDOR rates provide a cornerstone element for the stablecoin rates markets, using the same conventions as TradFi benchmarks, which support the largest derivatives markets in the world." Anthony DeMartino, CEO, Sentora says, "Sentora's mission is to make on-chain finance as efficient as traditional finance. With CDOR rates you can switch from floating to fixed funding, or speculate on the curve, in a single, capital-efficient trade; a crucial building block that's been missing for years. These rates will enable new DeFi use cases and Sentora is happy to support the evolution of capital markets on-chain." Liquidity Providers Signal Support for CDOR Exchange-traded futures contracts, currently under development, will settle against CDOR rates and will provide market participants with new and powerful tools for risk management and strategy implementation. Galaxy, FalconX, Flowdesk and Tyr Capital will act as founding market makers. Ed Hindi, CIO, Tyr Capital says,"CDOR rates enable the creation of a broad range of financial derivatives that are currently missing in the crypto financial ecosystem. This addition alongside a clearer regulatory environment should exponentially increase the interaction of institutional players with DeFi. The ability to efficiently manage interest rate risk is a game changer for the CeDeFi markets. Tyr Capital is thrilled to be more widely involved in making the TradFi and crypto relationship more symbiotic." Jason Urban, Global Head of Trading at Galaxy says,"With CDOR rates, the market gains a powerful rate signal that reflects real-time borrower demand and enables smart, scalable trading strategies. It's a meaningful step in bridging DeFi and traditional finance, making stablecoin markets more accessible and actionable for sophisticated investors." Joshua Lim, Global Co-Head of Markets, FalconX says,"We are pleased to partner with CoinDesk Indices and Sentora on their CDOR product suite. The next phase of growth in crypto will be driven by convergence of CeFi and DeFi capital markets." Reed Werbitt, US CEO, Flowdesk says,"The introduction of CDOR will enable broader institutional adoption and participation in crypto credit markets, enhancing capital efficiency and risk management across our trading strategies. The ability to mitigate interest rate risk is a critical foundation of a functioning capital market, and we're excited to be working with Sentora to bring this product to fruition." By turning on-chain market activity into standardized interest rates, CDOR lays the groundwork for exchange-traded money-market futures and other rate-based derivatives. For additional information on CDOR please visit View the CoinDesk Overnight Rates (CDOR) - Aave | USDC and Aave | USDT. About CoinDesk Indices Since 2014, CoinDesk Indices has been at the forefront of the digital asset revolution, empowering investors globally. A portfolio company of the Bullish Group, its indices form the foundation of the world's largest digital asset products. CoinDesk Indices is regulated in the UK by the Financial Conduct Authority and offers products across multi-asset indices, reference rates, and strategies. Flagships such as the CoinDesk Bitcoin Price Index and the CoinDesk 20 Index set the industry standard for measuring, trading, and investing in digital assets. With tens of billions of dollars in benchmarked assets, CoinDesk Indices is a trusted partner. About Sentora Sentora, born from the recent merger between DeFi technology specialist IntoTheBlock and financial solutions provider Trident Digital, is a leader in developing institutional-grade DeFi solutions, yield strategies and risk-management infrastructure. Sentora's solutions connect leading digital asset firms and large capital allocators to the advantages of decentralized finance. About Aave Protocol Aave is the leading decentralized, non-custodial liquidity protocol, with over $40 billion in total value locked (TVL). It allows users to earn yield on deposits and borrow a wide range of digital assets without intermediaries. Core features include risk management tools such as supply and borrow caps, flash loans, and GHO — a decentralized, overcollateralized stablecoin native to the protocol. Aave is fully governed by the Aave Decentralized Autonomous Organization (DAO). Learn more or participate in governance at Disclaimer CoinDesk is a portfolio company of the Bullish Group. CoinDesk Indices, Inc., including CC Data Limited, its affiliate which performs certain outsourced administration and calculation services on its behalf (collectively, "CoinDesk Indices"), does not sponsor, endorse, sell, promote, or manage any investment offered by any third party that seeks to provide an investment return based on the performance of any index. CoinDesk Indices is neither an investment adviser nor a commodity trading advisor and makes no representation regarding the advisability of making an investment linked to any CoinDesk Indices index. CoinDesk Indices does not act as a fiduciary. A decision to invest in any asset linked to a CoinDesk Indices index should not be made in reliance on any of the statements set forth in this document or elsewhere by CoinDesk Indices. All content displayed here or otherwise used in connection with any CoinDesk Indices index (the "Content") is owned by CoinDesk Indices and/or its third-party data providers and licensors, unless stated otherwise by CoinDesk Indices. CoinDesk Indices does not guarantee the accuracy, completeness, timeliness, adequacy, validity, or availability of any of the Content. CoinDesk Indices is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the Content. CoinDesk Indices does not assume any obligation to update the Content following publication in any form or format. © 2025 CoinDesk Indices, Inc. All rights reserved. Forward-Looking Statements: This press release may include "forward-looking statements" relating to future events or the Bullish Group's future financial or operating performance, business strategy, and potential market opportunity. Such forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Bullish Group, are inherently uncertain and are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. You should not place undue reliance on any such forward-looking statements, which speak only as of the date they are made, and the Bullish Group undertakes no duty to update these forward-looking statements.
Yahoo
a day ago
- Business
- Yahoo
Home on the (BTC) Range
Hi. I'm Andy Baehr with the CoinDesk Indices team. Question: Bitcoin is stuck in a range. Is that a bad thing or a good thing? Even casual BTC watchers will have noted the ten percent channel that has held for more than a month. As of today, in fact, it has been 40 days since we entered the ~$101K - ~$111K range, with no catalyst forcing a breakout through either boundary. Good or bad thing? The macro muddle supports range-trading. Our anchor bitcoin macro factor remains expectations for future real interest rates--nominal rates minus inflation. Recent cross-currents create an unclear picture: inflation expectations from surveys have been elevated (though recent releases seem less concerning), while hopes for Fed relief were dim until the market began pricing in two 2025 cuts more assertively. Too muddled for a breakout. Bitcoin is doing what it should. For the store-of-value thesis, range-trading is actually fine. As bitcoin accumulates more days of "not unexpected" behavior, it supports the narrative of relative independence from other risk assets and improved stability. (The S&P 500 has also kept an 8% range through the same 39 days, so bitcoin isn't alone in this holding pattern, although recent news flows might have knocked a younger bitcoin off the track.) But traders are getting restless. Bitcoin's basement-level thirty-day realized volatility below 30% crimps opportunity. Implied vols are also down as option buyers grow fatigued and sellers grab yield more confidently. Like any market, a range that holds too long creates complacency—making the eventual exit more "exciting" than it would otherwise be. The stalled mood is hurting breadth. Without bitcoin providing leadership, other digital assets are wilting. The CoinDesk 20 Index has trailed bitcoin by about 5% over the past month, as the lack of sentiment has stalled the late-April rally, even in ETH, which had bounced strongly. How does this compare historically? With some truly unattractive vibe coding (I take the blame), we studied bitcoin's longest streaks of holding 10% ranges. The current 40-day stretch isn't the longest—that was 42 days—but it's close. Similar streaks occurred in 2018, 2020, and 2023. Given bitcoin's evolved ownership structure (ETFs, MSTR) and more accessible spot and derivatives markets, would a 50-day streak surprise anyone? Not sure.
Yahoo
a day ago
- Business
- Yahoo
Bitcoin's Record-Long Summer Lull: How Should You Trade It?
Bitcoin has been locked in a 10% trading channel for 39 days, putting it just days away from the longest range-bound streak ever recorded. How should you trade the asset during this summer lull and where will it go once BTC breaks out from the range? CoinDesk's Andy Baehr breaks it down on 'Chart of the Day,' presented by Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Crypto: What's the next milestone for bitcoin and stablecoins?
Bitcoin (BTC-USD) has held above $100,000 for a full month now, while Treasury Secretary Scott Bessent told lawmakers earlier this week that he envisions a US market for stablecoins worth up $2 trillion. CoinDesk Indices managing director Andy Baehr comes on Catalysts to speak more about how much higher bitcoin can run as more investors and legislators weigh stablecoin adoption. Also catch what Kristin Myers has to say about crypto ETF inflows. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Bitcoin's longest ever streak above $100,000 now extending to 31 days. The streak comes as the Senate voted Wednesday to advance stable coin legislation and Treasury Secretary Scott Beson saying he sees a potential two trillion dollar market for stable coins. Joining us now in studio, we've got Andy Bear, who is the managing director at Coindesk Indices. Okay, so a lot to dive in on here. But first, just the significance of us remaining above this psychological but key milestone of 100,000 in that marker for Bitcoin. Yeah, indeed. It's been as you said over a month now. And the top end of that range is the all-time high of 112. Um so that's a pretty tight range for Bitcoin to stay in, you know, intraday for a whole month. Uh it kind of shows a pause and the kind of new Bitcoin trading. We saw this earlier in the year during the tariff tantrum that we stayed between 82 and 88,000 more or less, or 80 and 88,000. Before that we were in the 90s for a long time. So Bitcoin is at this state of volatility and adoption, finding a new range, staying there, and then looking for a catalyst to either exit to the top or the bottom. So we're still there and no signs of exiting. We're right in the middle of that range. Um that coupled with some of the other risk off sentiment from geopolitical stuff and from the uncertainty about interest rates is kind of leaving us in a position where short term, not quite sure about direction, but longer term, and we can talk about stable coins and other catalysts, you know, we feel a lot a lot more positive. So we'll get to the stable coins and and I think what's more remarkable as well, on top of everything that you just said, is that when we take a look at things like the fear and greed index, we're not at extreme levels of greed that we would typically see when we're even hovering near or within a stone's $6,000 throw of all-time highs. So what does that signal about the appetite for some of the people that are attending conferences, the smart money, if you will, the big money that's out there, that is clearly acknowledging now that there needs to be a percentage of their clients' portfolios that needs to have some type of exposure. Yeah, it's on the wealth level, the retail level, the corporate level. There's over a hundred companies now that have Bitcoin in their treasuries, right? And if you aggregate all that, including strategy, you're well over 3% of all the Bitcoin, right? You have nearly 6% of all the Bitcoin in ETPs and exchange traded products. So that's only going to grow. That's definitely part of our long-term picture. I think the fellows in, I'm glad I didn't throw out my suits and ties from the old days because I'm starting to pick them out of the wardrobe again. Um that's uh that money is also slow money. It's slow uh it's slow money that's determined to enter the space. Um people want to see that kind of next 20% rebound. Us getting to 113,000 is not a big deal. We want to get to 120, 150, 200. That's going to come when catalysts come and the market trades there in a more in a more high volatility way. Right now, 30-day volatility of Bitcoin is under 30. So 30 under 30 is pretty remarkable. Just lastly while we have you here, 30 seconds, the significance of and potential to get to two trillion dollar stable coin market. Yeah. So so great for the government because they have a two trillion dollar customer for US Treasuries, right? Treasuries have become a chess piece in the in the trade wars, so that's good. Uh use of blockchain, Solana, Ethereum, other blockchains, those stable coins have to trade on those blockchains. We don't know which ones are going to dominate. We like the Coindesk 20 index, which has a bunch of layer ones and a bunch of defi platforms on there so people can kind of buy the index and not have to pick winners or not have to think about timing. Uh the significance about payments and and just, you know, abstraction of using stable coins for moving money around is hard to quantify. It's just, you know, I was on the floor of the New York Stock Exchange when Circle came. It was a blockbuster bell ringing, not the usual tea ceremony. You could tell that things were changing in a big way. Interesting. Andy, always a pleasure to get some of your perspective and insights. Thanks so much. Thank you. Sign in to access your portfolio
