Dollar-backed stablecoin to be launched on Cardano blockchain

Emurgo, the company behind the Cardano ecosystem, announced a US dollar-backed stablecoin, USDA. The mainnet launch is planned for Q1 2023. 

#EMURGO, the official commercial arm and a founding entity of the @Cardano #blockchain, announces the planned launch of its new U.S. Dollar-backed stablecoin, #USDA. A first fully fiat-backed, regulatory compliant #stablecoin in the #Cardano ecosystem.
🔗:https://t.co/I035EKi78f pic.twitter.com/uyCO9SOe8Z

— EMURGO (@emurgo_io) November 18, 2022

Emurgo serves as the commercial arm and one of the co-founders of the Cardano project. 

USDA will become part of the Anzens platform. The latter will offer users a range of financial services and products built on Cardano. In particular, developers plan to launch a lending service. 

According to the press release, the instrument is a fiat-backed stablecoin that is fully collateralized and “compliant with regulatory requirements.” The storage of reserves and deposits will be handled by Emurgo’s partner — an unnamed “regulated financial company based in the United States”. 

It is expected that USDA will play an important role in the development of the Cardano ecosystem and potentially enhance its resilience. The developers also noted that Anzens “will narrow the gap” between traditional finance and cryptocurrencies.

In September 2022, Input Output Global successfully activated the Vasil upgrade on the Cardano mainnet. The team introduced the second version of Plutus scripts and modified the cost model for each primitive.

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