Fun

Cardano finally gets fiat-backed stablecoin USDM after huge delays

News Feed - 2024-03-18 01:03:36

Brayden Lindrea4 hours agoCardano finally gets fiat-backed stablecoin USDM after huge delaysMehen Finance planned to launch USDM in early 2023 but saw delays after crypto-friendly banks shuttered in 2023 and its banking partner went to work with Circle.1912 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksLayer-1 blockchain Cardano has welcomed its first 1:1 fully fiat-backed stablecoin, USDM, the latest entrant in a $146-billion stablecoin market dominated by Tether (USDT) and Circle (USDC).


Launched on March 17, the Mehen Finance-founded stablecoin allows holders to mint or redeem USDM via the United States dollar and differs from existing Cardano-based stablecoins such as DJED and iUSD, which are algorithmic and synthetic-based.Mehen’s confirmation of USDM’s launch on Cardano. Source:@MehenOfficial


Mehen founding partner Matthew Plomin said the road to launching the stablecoin on Cardano wasn’t an easy one, with delays caused by issues with U.S. banks in 2023. 


The firm released its white paper in November 2022, explaining a U.S. dollar-backed stablecoin would provide a “much-needed service” to Cardano users.


Mehen planned on launching USDM in 2023, but “everything changed” when Silicon Valley Bank, Silvergate and Signature Bank shuttered in March 2023, Plomin said in a March 14 X Spaces.


Plomin revealed the bank it was working with, Cross River, cut ties with Mehen around when the bank teamed up with Circle, the second-largest stablecoin firm, which was looking for a new banking partner at the time.


“Once they had them, they didn’t care about us anymore,” Plomin said, adding:“[It was a] kick in the nuts delay.”


Mehen now uses fintech firm Plaid’s services to mint and burn U.S. dollars for USDM.


Plaid provides a payment transfer network between Bank of America, Chase, Wells Fargo and other large U.S. banks to power fintech and cryptocurrency products. The firm integrated Plaid’s services in August 2023, according to an X post from Steven Fisher, chief technology officer of Mehen.


“Adding your bank will allow you to deposit USD to mint USDM and allow you to burn USDM to receive USD,” Fisher said.


Mehen is now also actively seeking a money transmitter and virtual asset service provider license to expand its services in the United Kingdom and Europe.


Meanwhile, Plomin said two dozens firplan to integrate USDM on their platforms, which range from lending and borrowing protocols to decentralized exchanges. Mehen noted it will take one to two days for institutions to complete the onboarding process.


“This means USDM will slowly be arriving on-chain the week of the 18th,” it said.


Issuance and management of USDM will be governed by smart contracts and decentralized oracles to ensure transparency and security, Mehen states on its website.


Related:Cardano coins new name for its ADA-backed stablecoin Djed


The launch of USDM was met with optimism by several members of the Cardano community, including Jaromir Tesar, who described the launch as a “major milestone” for decentralized finance on Cardano.X post from Cardano Yoda. Source:@JaromirTesar


USDM enters a crowded and competitive market for stablecoins.


USDT and USDC have the largest market caps at $103.1 billion and $30.8 billion, respectively, while seven other stablecoins boast a market cap of over $500 million, according to CoinGecko.


However, USDM is shielded from competition from those stablecoins, at least on the Cardano network, as they aren’t currently available to be transferred via the Cardano blockchain.# Blockchain# Altcoin# Business# Adoption# Cardano# StablecoinAdd reactionAdd reactionRead moreSolana memecoin frenzy draws parallel to Ethereum ICO eraArbitrum whales move $58M into exchanges after token unlockIMF wants Pakistan to tax crypto gains to pay for $3B bailout

News Feed

Crypto Analyst Shatters XRP Price Bullishness, Predicts Massive Crash To This Support Level
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bybit receives VASP, card operator registration in Argentina
Derek Andersen6 hours agoBybit receives VASP, card operator registration in ArgentinaBybit’s registration as a virtual asset service provider was made possible by a law passed in July.396 Total views6 Total sharesListe
Kevin O’Leary Reveals How He Almost Secured $8 Billion to Rescue FTX Before It Collapsed
Kevin O"Leary Reveals How He Almost Secured $8 Billion to Rescue FTX Before It Collapsed Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has shared how he and Sam Bankman-F
India’s Central Bank Digital Currency Should Be Able to Do Anything Cryptocurrency Can Do With No Risk, Official Claims
India"s Central Bank Digital Currency Should Be Able to Do Anything Cryptocurrency Can Do With No Risk, Official Claims An Indian central bank official claims that if there is anyt
Hong Kong issuer seeks spot Bitcoin ETF for mainland China
Helen Partz9 hours agoHong Kong issuer seeks spot Bitcoin ETF for mainland ChinaHarvest’s CEO believes the Hong Kong-mainland China ETF bridge program could enable crypto ETF access in mainland China.2005 Total views11
Fed rate cuts are not a sure thing — What does this mean for Bitcoin?
Ciaran Lyons4 hours agoFed rate cuts are not a sure thing — What does this mean for Bitcoin?A portfolio manager says market participants are a bit too optimistic about an aggressive Federal Reserve interest rate cut, w
Ana Paula Pereira3 hours agoWho is Mira Murati, OpenAI’s interim CEO?OpenAI’s new interim CEO is considered a "product person" who supports regulatory oversight of artificial intelligence.780 Total views3 T
Peter Schiff’s Euro Pacific Bank Suspended by Puerto Rico’s Regulator — Schiff Insists No Evidence of Crime
Peter Schiff"s Euro Pacific Bank Suspended by Puerto Rico"s Regulator — Schiff Insists No Evidence of Crime Peter Schiff-owned Euro Pacific Bank has been suspended by Puerto Rico
Bitcoin, Ethereum Technical Analysis: Ethereum Down 6%, Crypto Red Wave Returns
Bitcoin, Ethereum Technical Analysis: Ethereum Down 6%, Crypto Red Wave Returns Bitcoin and ethereum saw recent losses extended on Thursday, as global cryptocurrency markets declin
Venture Capitalist Bill Gurley Prefers Ethereum to Bitcoin, Takes Personal Position in ETH
Venture Capitalist Bill Gurley Prefers Ethereum to Bitcoin, Takes Personal Position in ETH Venture capitalist Bill Gurley has taken a personal position in ether because he “
France Approves First ICO
France Approves First ICO The French financial markets regulator, the Autorité des Marchés Financiers (AMF), has made its first initial coin offering (ICO) approval
Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of Hardware
Demand for Cryptocurrency Miners Rises in Russia Amid Low Prices of Hardware Russia’s market for specialized crypto mining equipment has been seeing high demand over the pas