The Cardano blockchain has welcomed its first fiat-backed stablecoin with the introduction of the USDM by Mehen Finance on March 17.
In keeping with the undertaking:
“USDM will slowly be arriving on-chain the week of the 18th.”
The launch of this stablecoin comes virtually two years after the discharge of its white paper. Matthew Plomin, the undertaking’s founding associate, explained that the stablecoin launch was delayed resulting from points with US banks in 2023.
What’s USDM
USDM permits holders to mint and redeem their property via fiat US {Dollars} by leveraging the fintech agency Plaid. Plaid is a US-based monetary providers firm working in Canada, the UK, France, Spain, Eire, and the Netherlands.
In keeping with its web site, Mehen is actively pursuing Cash Transmitter licenses throughout varied US states and territories, VASP licenses in related jurisdictions, and engages in partnerships within the UK and the EU.
USDM’s launch is essential for Cardano as its ecosystem has encountered vital hurdles in establishing a presence within the stablecoin market. Cardano-based stablecoins like DJED and USDA have struggled with adoption and utilization in comparison with counterparts on Ethereum and Tron blockchains.
Data from DeFillama exhibits that stablecoins on Ethereum and Tron dominate the market, holding almost 90% market share.
Stablecoin market cap sees surge.
USDM’s launch arrives when the broader crypto trade is witnessing an uptrend within the stablecoin market.
In keeping with CryptoSlate’s information, the sector’s complete market capitalization has reached a formidable $146.1 billion, its highest level since October 2022. This marks a major turnaround for an trade that encountered substantial challenges and elevated regulatory scrutiny following the surprising collapse of the Terra algorithmic UST stablecoin.
Notably, Tether’s USDT stays the dominant participant within the area, boasting over $100 billion in circulating property, adopted carefully by Circle’s USDC with roughly $30 billion in circulation.
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