Cardano developer to release new stablecoin

Cardano developer Emurgo has announced plans to issue a stablecoin pegged to the dollar. The cryptocurrency will be called USDA and will become available in early 2023.

Emurgo, which operates as a separate official commercial arm of Cardano, said that USDA will be the first regulated stablecoin on the Cardano blockchain to be backed by a fiat currency. Charles Hoskinson's company also announced that USDA will be the first of the Anzens product line.

(Anzens is a Cardano financial services product designed to combine conventional funds and cryptocurrencies — ed.)

«The introduction of a stablecoin that is fully backed by fiat currencies and compliant with regulatory requirements is the next step in realizing a cloudless future for the cryptocurrency community,» said Vinit Bhuvanagiri, Managing Director of Emurgo Fintech.

Cardano’s customers will be able to convert USD to USDA using credit or debit cards, bank transfer, or ADA conversion. In addition to USD tokenization, Emurgo will soon provide USD Coin (USDC) and Tether (USDT) conversion to USDA, and in the long run, BTC, ETH, and others.

Recently, Charles Hoskinson, founder of cryptocurrency exchange Cardano (ADA), reacted to the collapse of the FTX cryptocurrency exchange, suggesting that this is one of the latest crises to hit the digital asset space. «I think the FTX crash is one of the last ones we will see. It’s hard to predict where this will lead and how much worse it will get,» Hoskinson commented.