Blockchain Tech Firm Cardano Set to Launch New Stablecoin in 2023

Nov. 26, 2022
Blockchain Tech Firm Cardano Set to Launch New Stablecoin in 2023

For Emurgo, a major blockchain technology firm, Cardano, a proof-of-stake blockchain platform, will shortly introduce USDA, a new stablecoin, in the first quarter of 2023. By the end of Q4, the buildup to the launch may have a favorable effect on Cardano’s growth.

USDA is a part of Emurgo’s Anzens offering, a larger scheme that would provide consumers with several financial services and goods operating on Cardano-based resources. These objectives include services for lending and borrowing, card payments based on cryptocurrencies, and connections between traditional markets and decentralized applications (dapps).

Using credit/debit cards, wire transfers, or conversion of Cardano’s native ADA token, users will be able to tokenize their USD into USDA when it launches on the Anzens platform in Q1 2023, according to Emurgo.

Without mentioning the firm, Emurgo claimed it had engaged with a licensed financial services organization with US roots as the banking partner to issue USDA, assuring the stablecoin is entirely compliant and follows legal requirements.

Emurgo will soon make it possible to convert other stablecoins, like USD Coin (USDC) and tether (USDT), into USD tokens in addition to tokenizing the US dollar. In the long run, the company also plans to make it possible to convert and swap other cryptocurrencies, like bitcoin (BTC), ether (ETH), and others.

Additionally, Emurgo stated that the stablecoin would be completely compliant with all regulations and built to shield Web3 players from the inherent volatility of the cryptocurrency market. To guarantee that the stablecoin offers long-term price stability, the US Dollar will completely support it.

It has a collaboration with an undisclosed, US-based, regulated financial services business that will serve as the cash deposits’ custodian. Furthermore, it mentioned that the debut item from its new Anzen suite will be USDA. This suite will concentrate on integrating cryptocurrency with conventional financial services.

Cardano Regaining Ground In The DeFi Market

The introduction of stablecoins on the Cardano network may aid the latter in regaining ground in the DeFi market. In recent months, the continuous bad market has had a negative impact on Cardano’s total volume locked (TVL). However, as can be seen from the image below, it had a jump in the previous few days up until the time of writing and some positive changes.

At the time of publication, Cardano had locked a total value of $58.07 million, and its TVL had increased by 1.45% over the previous day. Over the previous week, Cardano’s fees jumped by 2.8%. Per Staking Rewards, the number of Cardano stakes climbed by 4.73% in the previous 30 days. However, at the same time period, their income fell by 22.32%.

Source: DeFillama

Over the last several weeks, the blockchain’s velocity increased, suggesting that more ADA was being moved between addresses on a regular basis. However, the majority of these transactions could have taken place at a loss.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.