Daily Tearsheet: How banking CEOs are focusing on sustainability, and the impact of instability of Terra and GYEN stablecoins
- External pressures are going on banks to adopt new sustainability measures. Is it working?
- Also, putting the meltdown of Terra -- a large stablecoin -- into context.
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How banking CEOs are focusing on sustainability, in 4 charts
Banking and financial markets CEOs are increasingly responding to external pressures and have begun recognizing the value of sustainability in their operations in order to drive business performance. However, they are not prioritizing sustainability as much as their peers in other industries.
Many executives highlight the pressures coming from board members and investors, as well as customers, to speed up the process towards net-zero operations.
But the path to sustainability is not a clear one – many executives reported that there are still many uncertainties around what the bottom line benefits would be, making it hard to determine which strategy would be best, according to an IBM study.
Sounds unstable: fluctuations in Terra and GYEN stablecoins make billions disappear
Coinbase’s customers have recently filed a lawsuit against the company over the alleged loss of billions of dollars due to their role in promoting and trading the GYEN stablecoin. According to the suit, GYEN was promoted by Coinbase and the stablecoin’s issuer GMO-Z as a 1:1 peg to the Japanese Yen, despite its vulnerability to breaking. When the peg broke soon after trading started, multiple investors bought GYEN assuming a 1:1 peg, when in fact the stablecoin had become several times more expensive.
We take a look at the instability in some stablecoins and its impact on the market.
Just look at the charts
1. Growth of B2B card spend
Source: Marcel van Oost
2. JP Morgan outlined its plan for increased spending on tech and fintech products
Source: Spiros Margaris
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