Emurgo planned to launch a fully fiat-pegged stablecoin USDA.
Emurgo is a commercial arm of the Cardano blockchain and also one of the Cardano founding entities. Cardano is a popular Proof-of-stake consensus-based blockchain network, known for its ability to scale the network in terms of fees & TPS. IOHK is a developer team behind the Cardano blockchain. Charles Hoskinson is the CEO of IOHK, who is one of the founders of the Ethereum project. Perhaps he left the Ethereum project in a very early phase because of his disagreement with other founders over the future utility case of the Ethereum blockchain network.
On 18 November, Emurgo announced that it is working on a new stablecoin USDA, which will be fully pegged by fiat. In short, it will help to fight the risks associated & challenges associated with other existing stablecoins.
USDA will also be a fully compliance-based stablecoin in the environment of the Cardano blockchain. And probably it will be launched by the first quarter of next year.
Vineeth Bhuvanagiri, Fintech Managing Director at Emurgo, said:
“The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.”
The company planned to introduce the USDA stablecoin in all possible use cases like crypto payment system, Crypto card payment as a bridge between fiat & Blockchain technology and also in Decentralised Apps (DApps). Here this stablecoin may play an important role to boost the crypto financial services in the Cardano Blockchain ecosystem.
It is worth noting that last year Cardano founder Charles Hoskinson proposed a protocol-based stablecoin concept “Djed Stablecoin” but in June 2022 after the collapse of TerraUSD, a protocol-based stablecoin by Terraform Labs, many people criticised Hoskinson over Djed Stablecoin plan but Hoskinson responded to criticism & said that back-end team will reserve full funds behind Djed Stablecoin, to protect the users in case of any worst scenario.