The battle of trust – After the collapse of the UST algorithmic stablecoin of Terra (LUNA) last May, then the recent fall of FTXthe cryptosphere needs more than ever transparencyas well as a regulation that is clear and constructive (and not punitive and stifling). It is within this framework that the teams ofemurgo announce the upcoming arrival of USDA stablecoinwho would have – according to them – all these required qualities.
USDA: a stablecoin that claims to want to play the security card
the stall irreversible of the dollar suffered by the TerraUSD (USDT) in May 2022 has strongly shaken the trust in stablecoins. Especially the one in stablecoins algorithmic. But even more classic stablecoins, based on dollar reserves and dollar equivalents – like Tether’s USDT – still inspire fears.
L’USDAnetwork-based dollar stablecoin project Cardano, claims to want to address these concerns. It is a proposal foremurgo, the trading arm of Cardano. As CoinDesk reports in particular, the USDA would like to copy.
This stablecoin of the ADA blockchain thus promises to be “fully covered” by a reserve of fiduciary currencies equivalent to the USDA issued. And he says he wants to be compliance with regulatory frameworks.
“Introducing a fully fiat backed and regulatory compliant stablecoin is the next step in realizing the future of our community. »
Vineeth Bhuvanagiri, Managing Director of Emurgo Fintech
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A development of DeFi on the Cardano network?
The USDA stablecoin is part of a plan to development of DeFi (decentralized finance) on the network initiated by Charles Hoskinson. It must be said that Cardano is lagging behind the DeFi present on its main rival, the network Ethereum (ETH).
To issue this stablecoin, Emurgo would have partnered with a regulated financial services company, based in the United States. But unfortunately she has not been named yet. This regulated company would be the “banking partner” who would issue the USDAs. This in order to “comply with regulatory guidelines” Americans.
The USDA stablecoin is expected to launch as early as first quarter 2023through the platform Anzens. This will allow users to tokenize their US dollars against USDA in 1 for 1. This, via their cards credit/debit, transfers banks or the convert ADA tokensaccording to Emurgo.
Given the extremely troubled times the cryptosphere is currently going through, Emurgo seems to have got it right what investors in the sector are looking for. It remains to be seen whether the promises made will be kept. And above all, if the transparency and the reserve evidence will be fine.
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