Emurgo, the official investment arm of the Cardano blockchain, is set to launch USDA, a stablecoin, next year. USDA will be the Cardano ecosystem’s first regulated, fully fiat-backed stablecoin.
Although most stablecoins are backed by other assets, they are not regulated. This signals a shift in the cryptocurrency status quo.
The stablecoin will be built on the Anzens platform, one of the products being developed by the company to support the ecosystem.
“The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community,” wrote Emurgo Fintech Managing Director Vineeth Bhuvanagiri.
Emurgo partnered with a regulated financial institution in the United States to issue the token and ensure compliance with regulatory guidelines.
Following the launch of the stablecoin, there are additional plans in the works, including lending and borrowing, the conversion of other assets to USDA, credit card purchases, and others that will be made available to users. USDA is intended to be the currency of the Anzens platform.
Cardano is a blockchain created to be a better version of Proof-of-Work (PoW) blockchains, built primarily to address scalability, interoperability, and security. It was created by Charles Hoskinson, Ethereum’s co-founder, and it’s currently the 9th largest cryptocurrency, according to CoinMarketCap.
During the Singapore Token2049 conference, Emurgo mentioned investing $200 million in the Cardano ecosystem. This is intended to aid developers in creating decentralized applications that provide solutions to real-world problems.
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