Emurgo, the founding entity of Cardano, claims that the scheduled native stablecoin USDA under development will bring stability to the network, among other underlying benefits. USDA is one of the two proposed stablecoins for the Cardano network, expected to launch in the early months of 2023. USDA is a fiat-backed stablecoin that will be available for Cardano users for various transactions.
Apart from USDA, Cardano has a second upcoming stablecoin called Djed. It is an over-collateralized stablecoin that is algorithm-based. Djed is being developed by the DeFi service provider, COTI.
In a blog post, Emurgo explained that the USDA, like several other fiat-backed stablecoins, will peg against the U.S. dollar. Hence, every USDA purchase requires depositing an equivalent amount of U.S. dollars into a designated bank account to back it.
According to Emurgo, the USDA will introduce much-needed stability to the Cardano network. It will re…
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Source: Cryptocurrency - investing.com
