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While Cardano has shown time and time again its resilience as a hub for decentralised and sanction-free transactions, it has largely been ignored by USDT and USDC - two fiat-backed stablecoins created by the Tether Holdings and Circle Consortium. The two USD-backed tokenised assets with a combined value of $137 billion plus, have largely paid zero attention to the Cardano blockchain.
This hesitancy to launch USDT and USDC have served as a form of chasm as several decentralised applications (dApps) have been unable to access real-world liquidity as their counterparts on Ethereum and Solana.
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USDM is the first US-licensed fiat-backed stablecoin, meaning US residents building on Cardano can both store and move capital seamlessly across the Cardano blockchain. Even better, it is totally decentralised as network power rests in the hands of the community.
This means the Mehen project team cannot censor any transaction validated with USDM on the Cardano blockchain. This means users will not experience fund freeze with their native assets. This is due to the availability of a know-your-customer (KYC) verification process that all users have to go through before accessing the stablecoin. This ensures that bad actors or cyber criminals do not move value using the stablecoin, cutting out the necessity of censoring such transactions.
Even better, it operates seamlessly with all Cardano native assets allowing for capital to move across the 162 blockchain projects operating on the peer-focused platform. It is also fully secure, transparent, and scalable ensuring that value transmission across dApps is as smooth as it should be.
The Mehen team is not stopping here, though. The stablecoin maker is already making moves towards collaborating with payment companies to make debit card swipes, chip-and-PIN, or tap-to-pay capability fully accessible on Cardano while leveraging the tokenised value USDM promises.
All in all, USDM’s emergence on the Cardano is the much-needed jet fuel, the peer-reviewed protocol needed to become the new darling of the DeFi space.