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- Cardano has launched USDM, its first fully fiat-backed stablecoin, through Mehen Finance, distinguishing it from other Cardano-based stablecoins by offering direct U.S. dollar backing.
- USDM’s launch signifies a major advancement for Cardano, enhancing its position in the $146-billion stablecoin market and providing a stable, reliable option for its users.
Cardano, a prominent player in the blockchain arena, has recently made headlines with the introduction of its first entirely fiat-backed stablecoin, USDM, developed by Mehen Finance. This marks a pivotal moment in the expansive $146-billion stablecoin market.
Though originally scheduled for an early 2023 release, the launch encountered setbacks due to complications with U.S. banking partners, including the shutdown of notable banks such as Silicon Valley Bank, Silvergate, and Signature Bank. This situation was compounded when Mehen’s initial banking ally, Cross River, opted to collaborate with Circle, leading to further delays.
In a compelling new CNF YouTube video, USDM is showcased as a distinct entity among Cardano-based stablecoins like DJED and iUSD. What sets USDM apart is its direct backing by the U.S. dollar, enabling users to seamlessly mint or redeem USDM using real dollars.
This contrasts with the more complex algorithmic and synthetic-based stablecoins, positioning USDM as a more stable and dependable choice for Cardano enthusiasts.
A recent tweet by CardanoCommunity on March 17 revealed that the Mehen Finance-originated stablecoin permits users to mint or redeem USDM via the U.S. dollar. This functionality differentiates USDM from other existing Cardano-based stablecoins, such as DJED and iUSD, which are based on algorithmic and synthetic models.
#CardanoCommunity,$USDM IS HERE!
policyID – c48cbb3d5e57ed56e276bc45f99ab39abe94e6cd7ac39fb402da47ad
assetName – 0014df105553444d pic.twitter.com/gnkh4NikDS
— $USDM on Cardano (@MehenOfficial) March 17, 2024
Mehen’s journey to launching USDM wasn’t without its challenges. The white paper, released in November 2022, outlined the roadmap, but 2023 brought with it banking hurdles. After parting ways with Cross River, Mehen integrated services from fintech company Plaid in August 2023, ensuring smooth USD transactions for USDM.
In another supportive tweet by Cardano Yoda, the loyalty to USDM is emphasized, highlighting its status as the first USD-backed stablecoin in Cardano’s ecosystem and acknowledging the efforts of the Mehen team.
Even if there were $USDC and $USDT on #Cardano, I would be loyal to $USDM because it was the first USD-backed stablecoin in our ecosystem and the Mehen team deserves it.@MehenOfficial @circle @Tether_to
— Cardano YOD₳ (@JaromirTesar) March 17, 2024
Mehen is now expanding its reach to the UK and Europe, pursuing necessary licenses. An impressive number of over 2,000 partners are planning to incorporate USDM on their platforms. The management and issuance of USDM will be regulated through smart contracts and decentralized oracles, ensuring both transparency and security. Although USDM is entering a domain ruled by giants like USDT and USDC, it holds a unique position within the Cardano network, as these major stablecoins are not operable on Cardano’s blockchain. The Cardano community has enthusiastically embraced USDM, viewing it as a significant stride forward for decentralized finance on the platform.
In related news, previous CNF posts have highlighted that Cardano (ADA) has been fluctuating between $0.5319 and $0.7966 over the past month, yet to breach the $1.00 mark. The crypto community had anticipated the altcoin’s price to surge past this threshold on the back of recent bullish trends. As illustrated in the accompanying chart, ADA is currently priced at $0.689, witnessing a 5.57% increase in the last 24 hours.
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