Emurgo, the company behind Cardano and the Anzens exchange platform, will launch a stablecoin pegged to the US dollar. The name has already been announced and will be USDA.
On the exchange’s website, it is already possible to reserve your share in anticipation of the issuance of the USDA stablecoin that will be pegged to the dollar.
USDA: the first native stablecoin in the Cardano ecosystem
According to CoinDesk, the stablecoin on the Cardano blockchain will see the light of day early next year (2023).
According to reports, USDA will be fully collateralized off-chain by liquid reserves, such as USDT, and compliant with current regulations.
The digital currency that will see the light of day in 2023 is just the latest product in a larger program set up by Emurgo, the parent company.
The program includes a range of services including lending, crypto-based card payments, and faster connections between traditional marketplaces and dApps (decentralized apps).
As explained in a note to CoinDesk, Vineeth Bhuvanagiri Ad of Emurgo Fintech, believes that:
“The introduction of a fully fiat-backed and regulatory compliant stablecoin is the next step in realizing the future for our community.”
Stablecoins are nothing more than digital currencies backed by an asset or a basket of them and that are pegged to fiat currencies, in this case the US dollar.
They are the launching pad for less risk-averse investors to the cryptocurrency world and are subject to trading and lending.
The digital currency is aimed at all those companies and organizations using Web3 and offers more opportunities for yield farming and liquidity on DEXs.
“Reduce volatility by locking in the value of your cryptocurrencies.
Fast global transactions.
The USDA is a stable resource that offers Web3 companies and organizations a shelter from market volatility.
The USDA offers more opportunities for yield farming and liquidity on DEXs.”
This is what is reported on Anzens in the informative note promoting USDA for reservation.
Cardano‘s stablecoin will be issued next year and appeals to investors most fearful of the latest case of malfeasance that has tainted the world of digital currencies, namely FTX.
In fact, a stablecoin pegged to a stable fiat currency often considered a store of value, such as the US dollar, allows investors to protect themselves from high market volatility.
This feature allows people to protect their savings from the contagion of market fluctuations.