True crypto enthusiasts are holding the crypto market down during the crypto winter. These entities encircle Cardano. ໃນໄຕມາດທໍາອິດຂອງປີ 2023, Emurgo, a founding member of the Cardano blockchain and its official commercial arm, will launch USDA, a regulated stablecoin pegged to the United States Dollar.
USDA will be the first stablecoin in the Cardano ecosystem to meet all regulatory requirements and be backed by fiat currency. Stablecoins are digital currencies backed by one or more assets and pegged to fiat currencies such as the United States dollar. They allow traditional market players access to the bitcoin industry. Moreover, they are commonly used as trading, borrowing, and lending mechanisms across the ecosystem.
USDA set to hit the market in early 2023
Vineeth Bhuvanagiri, managing director of Emurgo Fintech, stated in an interview that the launch of a fully fiat-backed, regulated stablecoin (USDA) is the next step in reaching the community’s potential. USDA is incorporated into the Anzens product by Emurgo.
The broader proposal would provide customers with a variety of financial services and solutions based on Cardano assets. These proposals consist of lending and borrowing services, crypto-based card payments, and bridges between conventional markets and decentralized applications (dApps).
ການແນະນໍາຂອງ fiat-backed ຢ່າງເຕັມສ່ວນ, ສອດຄ່ອງຕາມລະບຽບການຄຸ້ມຄອງເປັນຂັ້ນຕອນຕໍ່ໄປໃນການ realizing ອະນາຄົດຂອງຊຸມຊົນຂອງພວກເຮົາ.
Vineeth Bhuvanagiri, Emurgo’s Fintech Managing Director
The launch of USDA could contribute to the growth of Cardano’s decentralized finance (Defi) ecosystem. According to figures from DeFiLlama, the Cardano ecosystem is worth a little over $53 million as of Friday. This is a decline of 82% from March’s highs of over $300 million.
The USDA plans to go live on the Anzens network in the first quarter of 2023, per Emurgo. After the stablecoin’s introduction, customers will be able to tokenize their USD through credit/debit cards, wire transfers, or the exchange of ADA.
Emurgo has teamed with a regulated financial services organization situated in the United States to issue USDA. This partnership ensures that the stablecoin is fully compliant and adheres to regulatory norms, according to Emurgo.
Emurgo will soon enable the conversion of other stablecoins, such as USD Coin (USDC) and tether (USDT), to USDA alongside the tokenization of USD. In addition, Emurgo has long-term intentions to facilitate the conversion and swapping of cryptocurrencies like bitcoin, ether, and others.
Source: https://www.cryptopolitan.com/usda-cardano-based-stablecoin-to-launch-2023/