Stablecoin xUSD Faces Scrutiny Over High Leverage
On October 29, crypto influencer CBB0FE issued a warning that Stream’s xUSD stablecoin is operating with a dangerously high leverage ratio. According to on-chain data, xUSD currently holds around $170 million in backing assets but has borrowed roughly $530 million from various lending protocols — implying leverage of 4.1x, much of it built on illiquid positions.
In response, Stream’s founder stated, “We are integrating third-party attestors this week. xUSD is fully collateralized and even overcollateralized, with an insurance fund in place. Most assets are held across CEXs and DEXs not yet tracked by Debank. The transparency issue will soon be resolved.”
This situation highlights a classic DeFi dilemma — the mismatch between collateral transparency and leverage expansion. The core issue, as pointed out by CBB, lies not merely in the collateral ratio but in the quality and liquidity of the underlying assets. If those assets are thinly traded or volatile, their market value could collapse in stress scenarios, instantly turning “overcollateralization” into undercollateralization and triggering cascading liquidations.
Trump Renews Pressure on the Federal Reserve for Rate Cuts
On October 29, U.S. President Donald Trump renewed his criticism of Federal Reserve Chair Jerome Powell, accusing him of being too slow to cut interest rates. Speaking in South Korea, Trump mockingly referred to Powell as “Jerome ‘Too Late’ Powell,” drawing laughter from business leaders and officials attending the APEC summit.
Trump’s repeated attacks on Powell are framed as efforts to stimulate the economy through rate cuts, but a deeper political logic may be at play — preparing a scapegoat in case tariffs or trade policies cause an economic slowdown. If this strategy continues, it could weaken confidence in the stability of the fiat monetary system and, paradoxically, boost the appeal of politically neutral assets such as Bitcoin.
Grayscale's Solana Trust ETF Set for NYSE Debut
On October 29, Grayscale announced that its Solana Trust ETF (GSOL) will begin trading on the New York Stock Exchange Arca on Wednesday (Beijing time), becoming the second Solana ETF launched this week. The product will allow U.S. equity investors direct exposure to SOL, including potential staking rewards.
This launch marks a milestone in the mainstream financial integration of cryptocurrencies. Beyond merely adding another avenue for SOL investment, it reflects shifting regulatory attitudes, greater market maturity, and the early formation of a more competitive landscape in crypto-based ETFs.