Jack Jia, a former Consensys employee and the founder of Stable.com, has introduced USD3, a new stablecoin focused on payments, despite the current absence of a regulatory framework and market uncertainty.
USD3 is designed as a 1:1 backed stablecoin and aims to serve as an extension of the U.S. dollar for global commerce and Web3. Jia unveiled the stablecoin's launch during the ongoing Consensus 2024 event in Austin, Texas, held from May 28 to May 31.
The stablecoin USD3 is available on Ethereum, Polygon, Avalanche, and Linea. Stablecoins are digital assets intended to maintain a stable value by being pegged to a reserve asset, such as the U.S. dollar in this case, or to commodities like gold, or even other cryptocurrencies.
Stablecoins are commonly used by crypto traders for trading, borrowing, and lending within the decentralized finance (DeFi) sector. They are also utilized by individuals seeking access to the stability of the dollar in regions where obtaining dollars is challenging.
The primary objective of stablecoins is to merge the advantages of digital currencies—such as swift transactions and security—with the stability offered by traditional currencies.
Jia stated in a press release, "We have learned from the shortcomings of previous players and understand their current deficiencies—our vision for USD3 is future-proof. Our plan is to achieve widespread adoption of our stablecoin and establish it as a cornerstone of a new global payment system."
Popular Stablecoins
Tether (USDT) is the most well-known stablecoin. Tether is a popular cryptocurrency that is based on the US dollar and attempts to keep a 1:1 value ratio with it. It is frequently utilized in the cryptocurrency ecosystem for transfers, trading, and value storage. The USD Coin, or "USDC," is one of the other prominent stablecoins.
Stablecoins Tether's USDT and USD Coin's USDC have been discussed, with particular attention paid to determining which is safer.
Stablecoin Control
On April 17, the Lummis-Gillibrand Payment Stablecoin Act was introduced in the United States.
The goal of regulatory certainty surrounding the stablecoin market is to promote broader use. Most recently, the U.S. credit rating agency S&P Global stated that the legal environment might boost confidence and lead to a surge in stablecoin usage in the United States if the Lummis-Gillibrand Payment Stablecoin Act's provisions are changed.
Stablecoin issuers in Europe are reminded to abide by laws of the Markets in Crypto Assets Regulation (MiCA) around stablecoins. Nonetheless, some exchanges have delisted Tether's USDT due to the ambiguity.
In March, OKX stopped supporting users residing in the European Union and the European Economic Area who were using Tether's USDT stablecoin.
May 2024, Cryptoniteuae