Cardano (ADA) commercial division has announced its intention to release a stablecoin pegged to the US dollar using fiat currency.
The company claims the crypto asset is backed 1:1 and complies with all applicable regulations, noting that the product bridges the gap between conventional banking and decentralized currency markets (DeFi).
There will soon be a new cryptocurrency pegged to the US dollar, as revealed by the Cardano (ADA) blockchain's commercial arm. To start 2019, EMURGO has announced that it will release USDA, the first USD-backed stablecoin for the Cardano ecosystem.
By combining the long-term stability of the US Dollar with the high security, low fees, and environmental friendliness of the ADA blockchain, the stablecoin was reportedly developed by EMURGO to protect investors and Web3 firms from volatility within the crypto markets.
In addition, the company claims the crypto asset is backed 1:1 and is compliant with all applicable regulations, noting that the product bridges the gap between conventional banking and decentralized currency markets (DeFi).
To ensure that the stablecoin is compliant with all applicable laws and regulations, EMURGO has partnered with a U.S.-based regulated financial services company to handle cash deposits.
USDA's robust and long-term price stability is backed by real-world assets, which could eventually lead to the release of more trustworthy financial services for the Cardano ecosystem.
The USDA is the first offering from [Anzens and] EMURGO's new product suite, designed to "bridge the gap between traditional finance and DeFi."
According to the announcement, users can tokenize their dollars and transfer them as native ADA assets through EMURGO's Anzens product line.
As a means of speeding up the creation of Cardano-based decentralized applications (DApps), EMURGO was released at the beginning of the year. In the first phase, a modular toolkit was made available, and in the second, developers were given access to the ADA ecosystem.
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