A Cardano-Based Stablecoin, USDA, Is Set For Launch In 2023
Emurgo, a Cardano network pioneer, plans to launch a USD-pegged stablecoin, USDA, on the Cardano network in early 2023. The USDA is part of the company’s products that would launch on the Anzens platform.
Meanwhile, Emurgo is also working with the necessary agencies. The aim is to ensure they meet all regulatory requirements to prevent issues with US regulators.
Emurgo To Issue First USD-backed Stablecoin On The Cardano Network
According to reports, Emurgo, Cardano’s official commercial arm, wants to release the first stablecoin on the Cardano network. The stablecoin, USDA, would be the network’s first regulatory-compliant, fiat-backed stablecoin.
Vineeth Bhuvanagiri, the Managing Director of Emurgo, said the launch would be a massive step for the Cardano community. Stablecoins are tokens anchored to fiat money like the USD but backed by crypto assets.
People use them for borrowing, trading, and lending. Additionally, it is a gateway for conventional market players to enter the crypto market. The USDA is only a fraction of Emurgo’s Anzens offering.
Emurgo wants to provide consumers with different financial products that operate on Cardano-backed assets. The firm would launch services like borrowing, lending, and crypto-backed card payments.
This would bridge the gap between decentralized applications (dApps) and the traditional market. Consequently, this initiative could help bolster the Cardano ecosystem.
On Friday, data from DeFiLlama reveals the ecosystem has a valuation of approximately $51 million. That is a fall of about 82% from the $300 million it recorded in March.
Emurgo To Offer Crypto-Fiat Conversions
According to Emurgo, the debut of USDA is scheduled for the first quarter of 2023. Also, it will launch the stablecoin on Anzens.
Following the launch, users can tokenize their USD holdings into USDA using debit or credit cards. They can also use wire transfers or convert their ADA token to USDA.
Additionally, Emurgo promised to abide by regulatory requirements. As a result, it has allied with a licensed financial institution in the United States.
The financial institution would function as a banking partner for the issuance of USDA. Also, this partnership will ensure that the stablecoin complies with the appropriate regulatory requirements.
Meanwhile, USD tokenization is one of many services Emurgo will offer. In addition, the fintech firm will also support the conversion of other stablecoins like USDT and USDC.
Furthermore, the company stated that it would enable swaps and conversion of cryptos like BTC and ETH. According to reports, Emurgo plans to invest about $200 million in Cardano soon to boost the network’s growth.
Emurgo made the statement at the Token2049 conference, which took place in Singapore recently.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
