Source: CoinMarketCap

On March 17th, 2024, Cardano’s newest stablecoin - USDM launched, however, it is not yet available to the public.

The new stablecoin which is the first fiat-backed stablecoin by Cardano will be pegged to the United States Dollar (USD) in a ratio of 1:1. Mehen Finance, the company responsible for developing USDM is set to roll it out to the public early next month - April. However, for now, only institutions in qualified countries can sign up for the platform and mint the stablecoin. USDM is native to the Cardano chain which wasn’t built with smart contracts so, there is no tendency for freeze, unlike popular stablecoins such as Circle’s USDT and Tether’s USDC.

The stablecoin was initially set for launch in 2023 but after unexpectedly closing banks that supported cryptocurrencies, the plan faced serious obstacles. The disruption in the banking industry and the departure of Cross River, its former banking partner to Circle, the creator of USDC, caused unanticipated delays in the deployment of USDM.

The launch USDM offers Cardano users a new option, an alternative to other dollar-backed stablecoins. It sets itself apart from other Cardano-based stablecoins, such DJED and iUSD. DJED and iUSD are Cardano-based stablecoins but are algorithmic and synthetic respectively. This launch is believed to be a significant turning point for decentralized finance.

This news came at a time when the community’s hope in Hydra’s launch was declining. Hydra is Cardano’s proposed layer 2 blockchain. Charles Hoskinson, co-founder of Cardano took the opportunity to reassure the community of the company’s dedication to improving the efficiency and scalability of the blockchain, declining any allegations that they were giving up on Hydra. He rebuffed the FUD claims via a tweet.

“I'm seeing some videos claiming that Hydra has been abandoned. It is just pure FUD. The team has never been more productive and motivated, there is great community engagement and new papers on the way for enhancements to the protocol. If you are ever curious about the project go to https://hydra.family/head-protocol/ for the latest information,” Charles tweeted.