Emurgo, the commercial arm of the Cardano blockchain, announced on November 18 the New stable control to be launched soon : USDA. The goal is to make its decentralized finance (DeFi) ecosystem more sustainable and healthy.
USDA: Cardano’s next coin
Emurgo is ready to launch the first stable powered by its own blockchain network. The launch of the stablecoin is expected to take place at the beginning of the year 2023. The US dollar is expected to support the stablecoin with a 1:1 rule, so 1 US dollar (USD) will equal 1 USDA.
The support of the stable digital currency to the US dollar it is likely to reassure consumers. The volatility of cryptocurrencies remains a major obstacle to the mass adoption of digital currencies to settle everyday life transactions.
In the future, it is planned to expand the conversion options to other stable currencies like USD Coin (USDC) or Tether (USDT) or to other currencies like ETH or Bitcoin.
The market is still largely traumatized by the remarkable bankruptcy of the algorithmic stablecoin TerraCoin in May 2022. Therefore, the vulnerability of the algorithmic stable forces users to move towards a reliable and secure conflict. The emergence of the first stable digital currency that supports the Cardano blockchain technology is very exciting, because this ecosystem is associated with the best security.
Emurgo sets up the Anzens platform:
Emurgo target provide an ecosystem “More sustainable and healthier” to promote decentralized application development. For this, Emurgo has set up the Anzens platform, which would enable its users to convert US dollars to USDA.
Several payment options are offered : payment by debit/credit card, bank transfer or direct ADA conversion (Cardano’s official currency). This will include launching a lending or lending service, card payments in cryptocurrency, as well as gateways between decentralized applications and traditional financial markets.
1:1, always. pic.twitter.com/HME4l6whhT
— Anzens Official (@AnzensOfficial) November 18, 2022
A new war in the world of stables in perspective!
The launch of the first stablecoin on the Cardano network should undoubtedly revive the small Stablecoins affect war. Remember that the market so far is mainly dominated by Tether (USDT), USD Coin (USDC) or even Binance USD (BUSD). These 3 stable coins account for more than 90% of the market share.
The arrival of the upcoming stables, supported by heavyweights in the cryptocurrency sector, should completely disrupt the market. Emurgo should also rely on the power of its financial network drive its stable currency.
In particular, it is a question of partnership with an American financial services company whose identity has not yet been revealed. The signing of banking partnerships should act as a factor of price stability in the long term and therefore facilitate the development of new, more stable financial services.
The goal: boost Cardano!
“The launch of a new stablecoin that is fully supported by government currencies and complies with current regulations is the next step in the development of Cardano,” said Vineeth Bhuvanagiri, CEO of Emurgo.
The reality is that Cardano is struggling to make a name for itself in the world of decentralized applications. Its main competitor: Ethereum has more than ever in this part of the market. Cardano is stagnating in 8th place on the main crypto-currency market, with a total capitalization of 10.5 billion dollars (compared to 308 billion dollars for Bitcoin).
The volatility of cryptocurrencies is largely a hindrance to the development of decentralized applications. The idea is that reduce volatility by locking in the value of crypto assets. The launch of the first stablecoin should allow it to promote the development of decentralized applications (dApps) using their own blockchain technology.
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How do stablecoins help protect savings?