December 5, 2022

Cardano co-founders are about to launch a USD-backed stablecoin

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Cardano co-founders are about to launch a USD-backed stablecoin

Cardano blockchain co-founder Emurgo Fintech plans to launch USDA, a stablecoin pegged to the US dollar, in early 2023.

The Emurgo Fintech team announced that the USDA will becomethe first digital asset in the Cardano ecosystem fully backed by fiat and compliant with regulatory requirements. Emurgo Fintech Director Vineeth Bhuvanagiri outlined the bright prospects that the new stablecoin should bring:

“The introduction of a 100% fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.”

USDA is part of the Emurgo Anzens product,which will offer users several financial services and products in assets based on Cardano. The plans include lending services, crypto-based bank card payments, bridges between traditional markets and decentralized applications (dapps).

New asset aims to build trust in the ecosystemDecentralized Finance (DeFi) Cardano, whose market capitalization has fallen to $53 million. This is an 82% decline from March highs of over $300 million. USDA is expected to launch on the Anzens platform in the first quarter of 2023.

Platform users will be able to tokenize theirUS dollars to USDA via credit/debit cards, wire transfer or native Cardano ADA token conversion. Emurgo is partnering with a U.S.-regulated financial company to launch the USDA, whose name is being kept under wraps. The Emurgo team is about to launch USD Coin (USDC) and Tether (USDT) stablecoin conversion to USDA soon with long-term exchange plans for bitcoin, ether and other cryptocurrencies.

Gaming company Wemade recently launched a USDC-pegged stablecoin.