Cardano (ADA) will have its own stablecoin from the first quarter of 2023. Backed by the US dollar, the USDA will be the first product in the Azens range, a series of tools aimed at bridging the gap between finance traditional and decentralized finance (DeFi) for the Cardano ecosystem.
Cardano announces the arrival of its stablecoin
emurgothe trading arm of the Cardano (ADA) blockchain, has just announced the upcoming arrival of the USDA, its own stablecoin backed by the US dollar.
#EMURGOthe official commercial arm and a founding entity of the @Cardano #blockchainannounces the planned launch of its new US Dollar-backed stablecoin, #USDA. A first fully fiat-backed, regulatory compliant #stablecoin in the #Cardano ecosystem.
🔗:https://t.co/I035EKi78f pic.twitter.com/uyCO9SOe8Z— EMURGO (@emurgo_io) November 18, 2022
Advertised as “the first blockchain-regulated stablecoin backed by fiat currency”, USDA is expected to enter the market in the first quarter of 2023. The announcement of this new stablecoin makes sense, as this type of cryptocurrency is now displayed as the centerpiece of decentralized finance (DeFi) and more broadly of exchanges through the blockchain, and this above all for their value impervious to market volatility.
Regarding Cardano’s reserve to insure the USDA, the company assures that its stablecoin will be fully insured with its cash equivalent:
“EMURGO has partnered with a US-based regulated financial services company for custody of cash deposits, ensuring that the stablecoin is fully compliant and meets regulatory guidelines. Backed by “real-world” assets, the USDA provides strong long-term price stability, which could unlock more reliable financial services for the Cardano ecosystem. »
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The Azens range makes its debut
According to the statement, users of the Cardano blockchain will be able to afford USDA by paying directly by credit cardby bank transfer or simply by exchanging their ADA tokens for this new asset.
For Vineeth Bhuvanagri, CEO of Emurgo FintechUSDA signs new opportunities for the unbanked:
“The USDA is a native asset, freely tradable on Cardano, and backed by US currency. This stablecoin not only provides stability for investors who conduct financial transactions on the blockchain, but it paves the way for the Cardano ecosystem to solve a problem that only we can solve: banking the underbanked. »
The USDA Roadmap includes native conversion from other stablecoins such as USDT or USDC, but also from cryptocurrencies outside the Cardano ecosystem such as Bitcoin (BTC) or Ether (ETH). There is currently no date announced for these features.
The USDA registers as the first product in the Azens rangea series of future tools aimed at bridging traditional finance and DeFi.
ADA’s price was unresponsive to the news, with the cryptocurrency currently trading at $0.32 after losing 2% over the past 24 hours.
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Source: Emurgo
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