The Cardano blockchain has welcomed its first fiat-backed stablecoin with the introduction of the USDM by Mehen Finance on March 17.
According to the project:
“USDM will slowly be arriving on-chain the week of the 18th.”
The launch of this stablecoin comes almost two years after the release of its white paper. Matthew Plomin, the project’s founding partner, explained that the stablecoin launch was delayed due to issues with US banks in 2023.
What is USDM
USDM allows holders to mint and redeem their assets through fiat US Dollars by leveraging the fintech firm Plaid. Plaid is a US-based financial services company operating in Canada, the UK, France, Spain, Ireland, and the Netherlands.
According to its website, Mehen is actively pursuing Money Transmitter licenses across various US states and territories, VASP licenses in relevant jurisdictions, and engages in partnerships in the UK and the EU.
USDM’s launch is crucial for Cardano as its ecosystem has encountered significant hurdles in establishing a presence in the stablecoin market. Cardano-based stablecoins like DJED and USDA have struggled with adoption and usage compared to counterparts on Ethereum and Tron blockchains.
Data from DeFillama shows that stablecoins on Ethereum and Tron dominate the market, holding nearly 90% market share.
Stablecoin market cap sees surge.
USDM’s launch arrives when the broader crypto industry is witnessing an uptrend in the stablecoin market.
According to CryptoSlate’s data, the sector’s total market capitalization has reached an impressive $146.1 billion, its highest point since October 2022. This marks a significant turnaround for an industry that encountered substantial challenges and increased regulatory scrutiny following the shocking collapse of the Terra algorithmic UST stablecoin.
Notably, Tether’s USDT remains the dominant player in the space, boasting over $100 billion in circulating assets, followed closely by Circle’s USDC with approximately $30 billion in circulation.
Mentioned in this article
Latest Cardano Stories
Solana and ICP up over 49% against Bitcoin since SEC labeled them as securities
Analysis 2 months ago
All tokens embroiled in SEC’s scrutiny, however, see mixed fortunes against Bitcoin amidst legal turmoil.
Cardano’s DeFi ecosystem nears $300M TVL, buoyed by ADA’s bullish trend
DeFi 3 months ago
Cardano’s ADA positive price movement added about $2 billion to its market capitalization within a week.
Cardano enters beta test phase for new blockchain-based AI chat bot Girolamo
AI 4 months ago
The Girolamo chatbot is designed to offer real-time, contextually aware responses across a broad range of user queries and has the capability to generate and analyze images.
Hoskinson criticizes Vitalik for not acknowledging Cardano’s staking innovations
Staking 4 months ago
Hoskinson’s remarks followed a recent interview, where Buterin discussed the Ethereum roadmap and proposed redesigning Ethereum’s staking system via a solution similar to Cardano’s.
Latest Alpha Market Report
Available exclusively via
Digital vs. tangible: A deep dive into gold and spot Bitcoin ETFs
Andjela Radmilac · 1 day ago
CryptoSlate’s latest market report dives deep into the unique characteristics and investment potentials of gold and spot Bitcoin ETFs to understand their market impact.
AZTEQ Metaverse Evolves “Life” – GameFi Unlocked for Everyone
News Desk 3 hours ago
Groundbreaking New AI Trading Bot Hits $1M Raised in ICO
Chainwire 4 hours ago
Monitok Unveils Points program to promote self-custody between crypto users.
News Desk 4 hours ago
Go to Source
Author: Oluwapelumi Adejumo
Recommended Crypto Services, Products and Strategies:
When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered. The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing.
If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.
For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!
What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.
You may also be interested in