A new stablecoin has been launched—following a now recognizable trend in 2018. Known as StableUSD (USDS), the intention is to help crypto-traders preserve their wealth during periods of market volatility. The information was released by Stably, Inc, the company behind USDS a few days ago.
StableUSD, A New Stablecoin On the Market
During the last months, the cryptocurrency market has witnessed the creation of new stablecoins. Since Tether (USDT), perhaps the most popular stablecoin in the market, was involved in different controversies, market participants decided to launch their own stablecoins.
Stably, Inc, a VC-funded startup, took the decision to launch a new stablecoin known as StableUSD. This coin is egged and fully backed 1:1 by US dollars. The company decided to use a centralized model to fully back every single token issued with US dollars. These funds are held in escrow accounts and are managed by a regulated trustee, according to the blog post.
The startup informed that anyone is able to apply and redeem StableUSD. Verified clients will be able to send cash to the company and receive USDS back. After the user is registered, the user will have to send funds to the company to receive the USDS coins.
The company said about this process:
“The creation process will also work with Bitcoin (BTC), Ether (ETH), or Tether (USDT). The sent cryptocurrency will be converted to US dollars on the open market by our regulated third-party trustee. The corresponding amount of StableUSD will then be minted and sent back to the client through our smart contract.”
Furthermore, Stably is also working with different cryptocurrency exchanges to list the coin on these platforms. Market makers and exchanges are all invited to contact the company and start working with it.
Additionally, Prime Trust and Cohen & Co. have already signed a partnership with Stably. Prime Trust will be the regulated trustee for the StableUSD fiat reserves. Users will be able to view the fiat reserve’s balance using a live feed from Prime Trust’s API. Other stablecoins launched to the market do not offer this possibility. StableUSD is the first virtual currency that allows users to see in real-time the funds the company has.
Other recognized stablecoins in the market are Tether (USDT), Gemini Dollar (GUSD), or TrueUSD (TUSD). To the list, we can now add the StableUSD. It will be important to follow how this stablecoin will be accepted and compete against other coins.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.