The Cardano network, a proof-of-stake blockchain platform founded in 2015, announced the launch of its stablecoin. You would recall that some time ago, the blockchain team hinted to the public that it was working on an algorithmic stablecoin.
The stablecoin named Djed was in partnership with the COTI network. The company said a dollar would back the newly announced stablecoin.
Since the announcement, there have been mixed reactions on how it intends to stabilize the value. Similarly, there are reactions to the Cardano chain's reliability in running a stablecoin.
Emurgo announced that the Cardano network could have its fully fiat-backed stablecoin by the first quarter of 2023. Emurgo, the official commercial arm of the Cardano blockchain, said the stablecoin would be called USDA.
Similarly, the stablecoin will be regulatory compliant and pegged to the US Dollar. The launch of the stablecoin is to expand its use cases.
Emurgo's Fintech Managing Director, Vineeth Bhuvanagiri, said, "USDA is part of Emurgo's broader plan to expand Cardano's use cases." He said it would include lending and borrowing services and crypto-based card payments. In addition, the use case will include bridges between traditional markets and decentralized applications (dApps).
Vineeth Bhuvanagiri added, "The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community."
Furthermore, Emurgo's tweet revealed that "users will be able to tokenize their USD into USDA— via credit/debit cards, wire transfer or conversion of ADA."
The report says,
Emurgo plans to enable the conversion of other stablecoins — such as USDC and USDT into USDA after the launch."
Similarly, there are long-term plans to enable the conversion and swaps of cryptocurrencies. The cryptocurrencies will include Bitcoin, Ether, etc.
Cardano slates the issuance of the USDA stablecoin for the first quarter of 2023.
Emurgo said it has partnered with an undisclosed US-based regulated financial service provider.
Similarly, the firm will serve as the banking partner to issue the USDA token and ensure it is strictly regulatory compliant.
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