Cardano (ADA) is set to launch its new fully fiat-backed, regulatory-compliant U.S. Dollar-backed stablecoin, USDA in Q1 2023.
According to the announcement, Emurgo, the official commercial arm and a founding entity of the Cardano blockchain, is launching USDA.
USDA is the first item in Emurgo’s new Anzens product line, which promises to close the gap between traditional and digital finance.
Anyone can tokenize their dollars and move them as a Cardano-native asset through Anzens, which will offer a link to regulated financial services products available within the Cardano ecosystem.
In Q1 2023, USDA is anticipated to go live on the Anzens platform, allowing users to tokenize their USD into USDA using credit or debit cards, wire transfers, ACH transfers, or conversions of ADA.
Along with the tokenization of USD, Emurgo will soon make it possible to convert other stablecoins like USDC and USDT to USDA in a secure and convenient manner. There are also plans to support the conversion and swapping of other cryptocurrencies like BTC and ETH.
Emurgo Fintech Managing Director Vineeth Bhuvanagiri stated, “USDA is a native asset, freely exchangeable on Cardano, and backed by U.S. currency. This stablecoin not only offers stability to investors conducting financial transactions on the blockchain but advances a path forward for the Cardano ecosystem to address a problem we are uniquely positioned to solve — banking the underbanked.”
USDA offers solid, long-term price stability that may someday open up more credible financial services to the Cardano ecosystem because “real-world” assets back it.
By collaborating with a licensed financial services provider based in the United States to hold cash deposits, Emurgo ensures that the stablecoin complies with all relevant legislation.