Things are moving on the stablecoin side. EMURGO, the commercial arm of Cardano, unveils the first offering of its new Anzens product line, the USDA stablecoin. There is enough to create waves in the sector since this stablecoin is announced as the first of its kind 100% backed by fiat currency and compliant with the regulations in the Cardano (ADA) ecosystem.
The USDA, the birth of a star?
In a context where crypto users are fond of security and reliability in the face of recent bankruptcies like that of FTX, the Cardano stablecoin (ADA) aims to be reassuring and inclusive. This is confirmed by the Managing Director of EMURGO, Vineeth Bhuvanagiri:
“The USDA is a native asset, freely tradable on Cardano, and backed by US currency. This stablecoin not only provides stability for investors who conduct financial transactions on the blockchain, but it paves the way for the Cardano ecosystem to solve a problem only we can solve: banking the underbanked.”
Thus, the USDA whose launch is scheduled for the first quarter of 2023 will come to energize the ecosystem of Cardano (ADA). Users will initially be able to acquire it directly via fiat currency or ADA tokens.
Subsequently, according to EMURGO, conversion to other stablecoins such as USDC will be possible, as well as the conversion and exchange of cryptos.
Regulation at the heart of the USDA
The USDA is also the result of a partnership with an American financial services company. This company, whose name has not been revealed, will be responsible for the custody of fiat currency deposits.
Therefore, its users are reassured about regulatory compliance. EMURGO thus removes the specter of the SEC which is haunting crypto players at the moment.
Make way for Cardano’s Anzens range
Anzens is a solution was created with the aim of bridging the gap between DeFi and TradFi. Also, EMURGO aims to offer a regulated financial services portal. Within the Cardano ecosystem, anyone can tokenize their dollars there and move them like a native Cardano asset. Vineeth Bhuvanagiri refers to it as a standard in financial services:
“From web3 balance sheet management, to card payments directly with crypto, to better lending and borrowing services, Anzens will set the standard for safe and secure portals between TradFi and DeFi.”
Anzens’ roadmap is full. Thus, EMURGO also wants to make available there the conversion of cryptocurrencies into USD for immediate card payments, and stake pools that pay out rewards in USDA.
The universe of stablecoins is not one of respite. The current context in cryptos and in DeFi in particular calls for trust and transparency. To this end, a regulated stablecoin would be an adequate response to this challenge. However, only time will tell if the USDA is up to the ambitions of Cardano (ADA).
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As a finance professional, I consider blockchain to be a real revolution thanks to all its innovations that have a global impact. It is with passion that I take part in this new digital era through my articles.