invezz.com
New Zealand financial services provider Techemynt has announced the launch of the first stablecoin backed 1:1 by New Zealand’s dollar.
According to Techemynt, the stablecoin combines the intrinsic utility of cryptocurrency with the stability and value of the dollar to enable remittance, arbitrage, and digital payments.
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The announcement also stated that the stableocin will be available to users who are looking to up to NZ$100,000 value of the token. It will also exist on secondary markets such as the crypto exchange Dassetx.com.
First fully-functional NZD dollar stablecoin
The executive director of Techemynt Fran Strainer stated that the stablecoin has been under development for close to a year. He added that the company is proud to be the first to deliver a fully functional NZD dollar stablecoin. Techemynt is a completely regulated firm in New Zealand and has a strong link with the crypto hedge fund Techemy Capital.
The $NZD code will make use of a framework developed by Coinbase and the stablecoin will be deployed by Blockchain Labs on the Ethereum (ETH) blockchain.
To provide transparency, a “leading accounting firm” will validate the reserves of the $NZD dollar backing the stablecoin. Reports on the confirmation will be available every quarter, according to the announcement.
Several failed attempts in the past
Straijner also stated that Techemynt had spent almost a year with law firm MinterEllisonRuddWatts to make sure the stablecoin maintains the required regulatory standard.
He added that the level of work and scrutiny poured into the development of the NDZ stablecoin is what makes it unique and different from other failed efforts.
Several attempts have been made to create a stablecoin pegged to the NZD dollar. The first unregulated stablecoin, known as NZDT, was issued by the now-defunct crypto exchange Cryptopia in 2017.
The exchange got into trouble with regulatory issues, and it was forced to suspend issuing the token. Cryptopia tried again to resurrect the token in 2019, but the exchange suffered a major hacking incident. This led to its liquidation and the death of NZDT’s vision.