Emurgo has announced that it has plans to launch a new stablecoin that will be USD-pegged. Emurgo is the founding company as well as the official commercial arm of the Cardano blockchain.
Emurgo to Launch USDA
The company behind the development of the Cardano blockchain has announced that it is in the process of fully developing USDA. They are launching the stablecoin that will be pegged with the USD.
As per the officials, they are planning on launching the new stablecoin in the earlier part of 2023.
Emurgo has announced that they have no intentions of going with any kind of maneuvers such as TerraUSD (UST). Their stablecoin would be fully backed by fiat currencies.
Most importantly, their new ticket will be fully regulated. They will make sure that the stablecoin is launched in accordance with the regulator’s guidelines.
The token would be launched through the Cardano blockchain with aim of expanding the Cardano ecosystem.
Vineeth Bhuvanagiri’s Statement
Vineeth Bhuvanagiri, the Managing Director at Emurgo Fintech talked about the importance of launching the new stablecoin.
Bhuvanagiri stated that they have always wanted to secure the future of their ecosystem and community. Launching a stablecoin would finally help them complete their Cardano ecosystem.
They will be able to build a stronger and very loyal community that would stick around for a long time.
With the launch of the Cardano-backed stablecoin, they will be able to offer different kinds of features and services to the community.
In the future, they will be looking forward to offering lending, borrowing, and trading instruments that will be using the USDA stablecoin.
The target for the USDA
Emurgo officials have confirmed that the USDA would be launched as part of the Anzens product. With the USDA, their approach would be to offer multiple financial products and services to the users.
These services would operate and function through the Cardano-based assets.
They are aiming to target, decentralized applications (dApps), traditional markets, crypto-based card payments, borrowing, and lending.
They will also work to form a bridge between dApps and traditional finance.
Advantage or Cardano
With the launch of the stablecoin, the ecosystem of the Cardano blockchain would be bolstered significantly.
The Cardano blockchain’s DeFi ecosystem comprises $53 million in the form of TVL. With the launch of the USDA, Cardano expects the TVL would regain its lost TVL of $300 million.
Cardano’s native token “ADA” would also benefit from the new token. Its value would also experience a great surge as its utility would increase as well.
At the time of writing, ADA trades at $0.3249, having experienced a 0.03% dip in the past 24 hours. If things go as planned for Cardano, ADA’s value would rise in the year 2023.