Cardano-Based Stablecoin USDA “Launch Plan Resumes” with EMURGO and Encryptus Collaboration

On July 9, 2024, EMURGO announced the resumption of the USDA stablecoin launch plan, collaborating with Encryptus.

With the upcoming launch, USDA is set to provide more flexible trading and asset management options on DEXs and DeFi services.

USDA Launch Plan Resumes Under Encryptus Leadership

On July 9, 2024, EMURGO, the official commercial arm of Cardano (ADA), announced the resumption of the launch plan for the Cardano-based USD-pegged stablecoin “USDA.”

Initially introduced in November 2022, USDA was presented as Cardano’s first fully fiat-backed, regulatory-compliant stablecoin.

However, its launch was delayed due to regulatory issues. The new plan involves collaboration with the renowned cryptocurrency company “Encryptus.”

Established in 2021, Encryptus is a cryptocurrency company offering a wide range of services, including crypto-to-fiat exchange services (on/off-ramp services) for individuals and large enterprises.

The company is noted for its low-fee crypto exchange services and its compliance-focused team.

Encryptus holds a European license, a Lithuanian Virtual Asset Service Provider (VASP) license, and operates a payment network spanning over 80 countries, ensuring regulatory compliance and user trust.

In May 2024, EMURGO integrated an off-ramp function into the Cardano wallet Yoroi, allowing users to sell ADA and convert it to fiat currency. This feature was developed in collaboration with Encryptus.

A Major USD Stablecoin on Cardano?

USDA, set to be launched by Encryptus, will continue to be supported by EMURGO as a technology provider.

The stablecoin aims to remain fully backed and based on the Cardano blockchain, allowing users to autonomously manage and transfer USDA quickly and cost-effectively.

The official announcement highlights that users will be able to seamlessly purchase USDA with widely used currencies through an off-ramp feature available in over 80 countries.

The goal is to provide affordable liquidity, bridging the gap between traditional financial services and underserved communities in both emerging and developed markets.

With the introduction of a secure, Cardano-based stablecoin, users can expect more flexible trading and asset management options on decentralized exchanges (DEXs) and decentralized finance (DeFi) services.

This development is anticipated to significantly contribute to the growth of the Cardano ecosystem.

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