True crypto enthusiasts keep the crypto market going through the crypto winter. These entities encircle gimbal. In the first quarter of 2023, Emurgo, founding member of Cardano block chain and its official trading arm, will launch the USDA, a regulated stablecoin pegged to the US 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 US dollar. They allow traditional market players access to the bitcoin industry. Moreover, they are commonly used as mechanisms for exchange, borrowing and lending throughout the ecosystem.
USDA is expected to hit the market in early 2023
Vineeth Bhuvanagiri, Managing Director of Emurgo Fintech, said in an interview that launching a fully secure and regulated (USDA) stablecoin is the next step to reach the potential of the community. The USDA is integrated into the Anzens product by Emurgo.
The broader proposal would provide customers with a variety of financial services and solutions based on Cardano’s assets. These proposals consist of lending and borrowing services, crypto card payments and gateways between conventional markets and decentralized applications (dApps).
Introducing a fully secure and regulatory compliant stablecoin is the next step in realizing the future of our community.
Vineeth Bhuvanagiri, Fintech Managing Director of Emurgo
The launch of the USDA could help the growth of Cardano’s decentralized finance (Challenge) ecosystem. According to figures from DeFiLlama, the Cardano ecosystem was worth just over $53 million as of Friday. This is down 82% from March highs of over $300 million.
The USDA plans to commission the Anzens network in the first quarter of 2023, by Emurgo. After the introduction of the stablecoin, customers will be able to tokenize their USD through credit/debit cards, wire transfers or ADA exchange.
Emurgo has partnered with a regulated financial service organization located in the United States to issue the USDA. This partnership ensures that the stablecoin is fully compliant and adheres to regulatory standards, according to Emurgo.
Emurgo will soon enable the conversion of other stablecoins, such as USD Coin (USDC) and Tether (USDT), into USDA alongside the tokenization of USD. Additionally, Emurgo has long-term intentions to facilitate the conversion and exchange of cryptocurrencies like bitcoin, ether, and others.
The move comes months after Emurgo decided to invest around $200 million in the Cardano ecosystem in the coming months in an effort to expand membership in the network.
The next Cardano summit and the consequences of FTX
Cardano is one of the most renowned blockchain protocols, but it has fared poorly in terms of the emergence of fully functional and widely used decentralized applications (DApps) across the board. While the competitor Ethereum network includes hundreds of Dapps with a large number of stablecoins, Emurgo’s push to establish the USDA token can serve as a transition point for building more innovative apps.
Similar to his contemporaries, Cardano has seen a significant decline over the past two weeks. At press time, the asset was trading at $0.3305. The value of the asset decreased by 8.33% throughout the week. However, the asset had gained 1.90% the previous day.
The asset hit a low of $0.3159 last week. Cardano’s current price is 89% below its all-time high of $3.10.
Cardano Summit is the biggest annual conference of the Cardano community, organized by the Cardano Foundation with the help of EMURGO and IOG. Cardano Summit 2022 will be held November 19-21, 2022 in Lausanne, Switzerland, with virtual attendance possible for those unable to attend.
Notable speakers from Cardano’s founding entities (including Charles Hoskinson), ecosystem partners, and select members of the Cardano community will speak on a wide range of related topics including Cardano DeFi, NFT, Cardano Web3, investing , the Cardano metaverse, and games, among others. .
Since the collapse of Terra’s UST, stablecoins remain a tainted investment. Recently, on-chain stats released by CryptoQuant CEO Ki Young Ju indicated that FTX’s stablecoin stash has fallen to its lowest level in a year. Perhaps the USDA launch will restore the crypto community’s faith in stablecoins. However, a miracle and numbers are needed to bring it to life.