EMURGO has revealed plans to launch the first USD-backed stablecoin in the Cardano ecosystem USDA in Q1 2023.
Blockchain technology company and official commercial arm of Cardano EMURGO recently introduced the first USD-backed regulatory-compliant stablecoin in the Cardano ecosystem dubbed “USDA,” with plans to launch the asset in the first quarter of 2023.
The launch of the stablecoin is an attempt to provide investors and businesses within the crypto space with an opportunity to hold a fully fiat-backed asset on the Cardano protocol that is resistant to the neverending volatilities that characterize the cryptocurrency space.
According to an official announcement Friday, EMURGO plans to build USDA on its Anzens platform. The Anzens product suite aims to foster the adoption of Cardano-based assets by providing clients with a wide array of services on the protocol, including lending and borrowing services and bridges between dApps and protocols native to traditional finance. These will be bolstered by an opportunity to tokenize fiat and transact with it as Cardano-based assets.
EMURGO noted that USDA would fully comply with the regulations and stand out from the rest due to its reliance on the Cardano blockchain, which promises low-cost transactions and high throughput for on-chain settlements. EMURGO formed a partnership with a US-based regulated financial entity to provide custody for cash deposits.
The stablecoin will combine the stability of the dollar with the security and scalability of the Cardano chain. Following the launch of USDA, proponents will have the opportunity to convert their fiat to stablecoin through USD deposits on the protocol with bank transfers or card payments.
Users can also tokenize USDA through the conversion of ADA tokens. In addition, plans to convert other stablecoins, including USDT and USDC, to USDA have been revealed, and the feature will be introduced shortly after the launch. Furthermore, an option to convert other assets, such as BTC and ETH will be made available.
“Cardano ecosystem was built on the ethos of bringing real world applications… The introduction of a fully fiat-backed, regulatory compliant stablecoin is the next step in realizing the future for our community,” Vineeth Bhuvanagiri, FinTech Managing Director at EMURGO, remarked, speaking on the development.
EMURGO remains active in contributing to the growth of the cryptocurrency space, especially through Cardano. Its Africa and Middle East-focused division EMURGO Africa invested in UAE exchange MidChains in September to bring Cardano to the Middle East.
Last month, EMURGO disclosed plans to invest about $200M into projects within the cryptocurrency industry as an attempt to boost the ecosystem. The investment plan will spread to several crypto-focused projects in three years.