The Cardano community has welcomed this development as it would help boost their DeFi ecosystem.
Cardano will finally have its own fiat-backed stablecoin after one of its founding entities, EMURGO, announced that the USDA stablecoin will launch on the Proof-of-Stake network in Q1 2023.
EMURGO announced on November 18 that the stablecoin would be fully compliant, and designed to protect Web3 participants from the inherent volatility of the crypto market.
The US dollar will fully support the stablecoin, to ensure it provides long-term price stability.
EMURGO USDA Stablecoin Fully Backed by USD
EMURGO said it has a partnership with an unnamed regulated financial services company in the US that will act as custodian for the cash deposits. It also noted that USDA would be the first product to come from its new suite, Anzen, which will focus on connecting traditional financial services with cryptocurrencies.
Through the Anzen portal, users can tokenize their dollars, and use them on the Cardano Blockchain. Plans for Anzen include loans, bridges between DApps and traditional finance, as well as crypto debit cards.
EMURGO Fintech Managing Director, Vineeth Bhuvanagiri, said that, “This stablecoin not only offers stability to investors conducting financial transactions on the Blockchain, but also opens a path for the Cardano ecosystem to address a problem we are facing. a unique position to resolve: banking the underbanked”.
Cardano Community Welcomes Stablecoin Idea
The Cardano community has welcomed the new announcement. Other stablecoins may have also launched on Cardano before the arrival of USDA.
Talks about a Cardano-based stablecoin have been ongoing for a while. Several analysts have predicted that it would help propel Cardano’s decentralized finance (DeFi) ecosystem, which currently has a TVL of $53.32 million, really far from the $300 million-plus peak recorded in March.
Meanwhile, other developments are also ongoing at Cardano. Charles Hoskinson, founder of Cardano (ADA), recently revealed that the web is about to enter the Voltaire Age.
In this phase, the network would drive a more decentralized decision-making process; in fact, the first Cardano Improvement Proposal (CIP) is already available on GitHub.
Charles Hoskinson Introduces the ‘Midnight’ Private Blockchain
In a recent interview, Charles Hoskinson stated that Input-Output Global (IOG), which is the company behind Cardano, plans to implement a new Blockchain and privacy token, which will be called ‘Midnight,’ while the accompanying token for the private Blockchain will be called Dust.
By Audy Castaneda