- According to a press statement on November 18, 2022, Cardano developer Emurgo will launch the first USD-backed stablecoin for the Cardano (ADA) ecosystem in Q1 2023.
Emurgo introduces USDA
Emurgo, the founding organization and official commercial arm of the Cardano blockchain, has revealed intentions to introduce USDA, a stablecoin backed by the US dollar, in the first quarter of 2023.
USDA, the upcoming stablecoin, will be the first completely regulatory-compliant, fiat-backed stablecoin in the Cardano ecosystem.
“The Cardano ecosystem was built on the ethos of bringing real-world applications to crypto and creating the foundation to build the economy of the future. The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.
USDA is a native asset, freely exchangeable on Cardano, and backed by U.S. currency. This stablecoin not only offers stability to investors conducting financial transactions on the blockchain but advances a path forward for the Cardano ecosystem to address a problem we are uniquely positioned to solve — banking the underbanked.”
Said EMURGO Fintech Managing Director, Vineeth Bhuvanagiri.
USDA will adhere to all regulations.
The Cardano stablecoin, according to the article, will be developed on the Anzens platform, one of the product suites designed to speed up the adoption of Cardano-backed assets. The stablecoin will also be utilized for a wide range of ecosystem services, such as lending and borrowing, crypto-based card payments, and links between conventional markets and decentralized finance (DeFi) protocols.
Speaking on Anzens, Bhuvanagiri continued:
“Anzens is the next step in utilizing the Cardano ecosystem to address some of the biggest challenges the crypto industry faces in creating real-world solutions that seamlessly connect to the traditional financial services world. From managing Web3 balance sheets to making card payments directly with crypto to better lending and borrowing services, Anzens will set the standard for safe and secure portals between TradFi and DeFi.”
The business added that it is collaborating with an American-based, regulated financial services provider to guarantee that the unique stablecoin “adheres to regulatory norms” and is entirely compliant.
Emurgo affirmed that the solution would permit the exchange of cryptocurrencies like Bitcoin (BTC), ETH, and others for USDA as well as the conversion of other stablecoins like USD Coin (USDC) and tether (USDT).