Cardano’s Long-Awaited USDM Stablecoin Arrives
Cardano, a layer-1 blockchain, has introduced a new fully fiat-backed stablecoin called USDM. The stablecoin, launched on March 17 by Mehen Finance, allows users to mint or redeem USDM using the United States dollar. Unlike other stablecoins on the Cardano network, such as DJED and iUSD, which are algorithmic and synthetic-based, USDM is fully fiat-backed. The launch of this stablecoin is a significant development in the stablecoin market, which is currently dominated by Tether (USDT) and Circle (USDC), with a combined market capitalization of $146 billion.
The journey to launching USDM on the Cardano network was not without its challenges. According to Matthew Plomin, a founding partner of Mehen, there were delays caused by issues with U.S. banks in 2023. Mehen had planned to launch the stablecoin in 2023, but faced setbacks when the banks it was working with, including Cross River, cut ties with the company. This was due to their partnership with Circle, which was seeking a new banking partner at the time. Despite these obstacles, Mehen found a solution by partnering with fintech firm Plaid, which now assists with the minting and burning process of U.S. dollars for USDM.
Mehen is also expanding its services by actively seeking a money transmitter and virtual asset service provider license in the United Kingdom and Europe. The company aims to integrate USDM on various platforms, including lending and borrowing protocols and decentralized exchanges. Over 2,000 partners have expressed interest in integrating USDM, and Mehen expects the onboarding process to be completed within 1-2 days. The issuance and management of USDM will be governed by smart contracts and decentralized oracles, ensuring transparency and security.
The launch of USDM has been well-received by the Cardano community, with Jaromir Tesar describing it as a “major milestone” for decentralized finance on the network. While the stablecoin market is highly competitive, with USDT and USDC holding the largest market caps, USDM is unique as it is currently not transferable via the Cardano blockchain. This gives USDM an advantage on the Cardano network, where it faces less competition from other stablecoins.
The introduction of USDM on the Cardano network marks a significant development in the stablecoin market. Mehen Finance has overcome challenges and partnered with Plaid to ensure the successful launch of the stablecoin. With plans to expand its services and integrate USDM on various platforms, Mehen aims to establish USDM as a prominent stablecoin in the cryptocurrency industry.
11 thoughts on “Cardano’s Long-Awaited USDM Stablecoin Arrives”
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If USDM is not transferable on the Cardano blockchain, then what advantage does it really have? 🤔
Smart contracts and decentralized oracles are great, but are they really enough to guarantee transparency and security?
Mehen Finance’s plans to integrate USDM on various platforms may be ambitious, but execution is key. Let’s see if they can deliver.
The Cardano community’s positive response to USDM seems like a biased endorsement. Let’s see if it really gains traction.
Mehen Finance partnering with Plaid doesn’t necessarily guarantee the success of their stablecoin. It’s just a temporary solution.
The fact that USDM is fully fiat-backed doesn’t make it innovative or unique. It’s just another stablecoin in a saturated market.
With so many stablecoin options already available, it’s unlikely that USDM will make a significant impact in the industry. 😴
Expanding services and seeking licenses in the UK and Europe shows Mehen’s ambitious plans for growth. It’s exciting to see the integration of USDM on various platforms, creating more accessibility and usability for users.
Over 2,000 partners interested in integrating USDM? Sounds like an exaggeration or an attempt to create hype.
The delay caused by issues with U.S. banks shows that this project may not be reliable.
This new stablecoin seems unnecessary and redundant, considering the dominance of USDT and USDC in the market.