Initially, users will be able to convert US dollars to USDA by using credit or debit cards, wire transfers, or ADA conversion.
Emurgo, the official commercial arm and a founding entity of the Cardano blockchain, is planning to launch US dollar-pegged stablecoin, USDA, at the beginning of 2023.
The company claims that the USDA should appear exclusively on the Anzens platform in the first quarter of 2023. There, users will be able to convert their USD to USDA using credit or debit cards, Cardano (ADA) conversion, or wire transfers.
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The Cardano-based stablecoin is only a part of a collaboration between Emurgo and Anzens. The companies are expected to bring several financial products and services functioning on Cardano-based assets. The Emurgo and Anzens plan to launch lending and borrowing services and crypto card payments, as well as offering bridges between decentralized applications (dApps) and traditional markets.
On top of that, Emurgo emphasized that its USD-pegged stablecoin, USDA, fully complies with exciting regulations and guidelines. The company has partnered with an unnamed regulated financial service company to ensure stablecoin’s compatibility with current crypto regulations.
When commenting on Emurgo's plans, Managing Director of Emurgo Fintech, Vineeth Bhuvanagiri, noted:
The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.
Emurgo claims that soon after the launch, investors will be able to use other stablecoins, like Tether (USDT) and USD Coin (USDC), to convert to USDA. However, Emurgo’s plans don't stop there. In the future, the company hopes to enable the conversion of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.
The new launch of US dollar-pegged stablecoin could help to boost Cardano’s decentralized finance (DeFi) ecosystem. As of November 18th, according to the data shared by DeFiLlama, the total locked value is around $54 million. However, it is worth noting that the locked value has fallen drastically compared to the all-time high recorded in March. At that time, the total locked value was over $300 million.