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FUSD is the first fiat-backed stablecoin and ERC-20-like token on the Flow blockchain.
Dapper Labs Inc, the creator of the Flow blockchain, has announced a new stablecoin in its partnership with Prime Trust financial infrastructure provider. The stablecoin, named FUSD, will enable non-Dapper Labs companies building on the Flow blockchain to offer their users a non-volatile payment technique for digital collectibles.
FUSD functionality is similar to that of its brothers – Gemini’s GUSD and Circle’s USDC. It will, therefore, be a 1:1 stablecoin pegged to US dollars deposited at Prime Trust.
Dapper Labs CEO Roham Gharegozlou said FUSD is the first fiat-backed stablecoin and ERC-20-like token on the Flow blockchain. NBA Top Shot, the game company’s flagship product, has been using a USDC integration all through.
Gharegozlou also noted that FUSD will be powered by the Flow Client Library (FCL) which is a new tool forged for faster network development. “FCL unlocks the ability of anyone to make their ERC-20-style token on Flow,” he said, calling the tool the Flow equivalent of Web 3.
Dapper Labs and FUSD Stablecoin
The CryptoKitties game developer is making efforts towards the development of other stablecoins on the Flow blockchain, including the Flow-native ETH cryptocurrency. Stablecoins will allow users to pay for digital products in token form while developers collect that payment in their preferred token, in a single transaction. Dapper Labs also promises to simplify crypto payment in a Stripe-like manner.
Reportedly, most third-party app creators have been accepting payments in FLOW cryptocurrency. This is despite its unavailability in their countries’ crypto exchange platforms. At the time of writing, FLOW was trading at $12.42, down 1.7% in the last 24-hours.
Gharegozlou went on to explain that more tokens are crucial since non-custodial payment methods require that a token is available on the same blockchain as the payment. Moreover, the non-custodial system ensures that users’ assets remain under their control until the user trades them or uses them to make a payment. This aspect protects them from third-party risks and is, therefore, a critical part of the blockchain.
Even though a myriad of options exists on other blockchains, Dapper Labs aimed to provide the payment technique for current developers. More so, FUSD was made to facilitate the FLOW ecosystem rather than to become a competitor to USDC and USDT.
The company reports that payments can now be done through the Ramp app which is ready to provide fiat on-ramp. The service will be easily available to users in the US and Canada. Plans are also underway for MoonPay to join the bandwagon.