Things are moving on the stablecoin side. EMURGO, the commercial arm of Cardano, unveils the first offering of its new product line Anzens, the USDA stablecoin. There is a lot to create waves in the sector since this stablecoin is announced as the first of its kind 100% backed by fiat currency and complies with the regulations in the Cardano ecosystem (ADA).
The USDA, the birth of a star?
In a context where crypto users value security and reliability in light of recent bankruptcies like FTX, the Cardano stablecoin (ADA) aims to be positive and inclusive. EMURGO Managing Director, Vineeth Bhuvanagiri confirms this:
“The USDA is a native asset, freely tradable on Cardano, backed by US currency. Not only does this stablecoin provide stability for investors making financial transactions on the blockchain, it paves the way for the Cardano ecosystem to solve a problem only we can solve: banking the unbanked.”
Thus, the USDA whose launch is scheduled for the first quarter of 2023 will come to power the Cardano (ADA) ecosystem. Initially users will be able to receive it directly via fiat currency or ADA tokens.
After that, according to EMURGO, it will be possible to convert to another stable such as USDC, as well as to convert and exchange crypto.
Regulation at the heart of the USDA
The USDA is also the result of a partnership with an American financial services company. This company, whose name has not been disclosed, will be responsible for holding fiat currency deposits.
Therefore, its users are reassured about regulatory compliance. EMURGO therefore removes the specter of the SEC that currently threatens crypto players.
Make way for the Anzens Cardano range
Anzens solution was created with the aim of bridging the gap between DeFi and TradFi. EMURGO also aims to offer a regulated financial services portal. Within the Cardano ecosystem, anyone can then mark their dollars and move them as a native Cardano asset. Vineeth Bhuvanagiri refers to it as a standard in financial services:
“From web3 balance sheet management, to card payments directly with crypto, to better lending and lending services, Anzens will set the standard for safe and secure gateways between TradFi and DeFi.”
Anzens roadmap is full. Therefore, EMURGO also wants to make it available to convert cryptocurrencies to USD for instant card payments, and bet pools that pay rewards in USDA.
The world of stables is not a relief. The current context in cryptos and DeFi in particular requires trust and transparency. To that end, a regulated currency would be an adequate response to this challenge. However, only time will tell if the USDA lives up to Cardano’s (ADA) ambitions.
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As a financial professional, I consider blockchain to be a true revolution thanks to all its innovations that have a global impact. It is with passion that I participate in this new digital era through my articles.