After significant delays, Cardano finally introduces USDM
Mehen Finance originally aimed to roll out USDM in early 2023. However, their plans were derailed due to unforeseen delays triggered by the closure of crypto-friendly banks in 2023.
Crypto News– Cardano, a layer-1 blockchain, has recently welcomed its inaugural 1:1 fully fiat-backed stablecoin, USDM, marking its entry into a stablecoin market valued at $146 billion, predominantly dominated by Tether (USDT) and Circle (USDC).
After significant delays, Cardano finally introduces USDM
Officially launched on March 17, USDM, spearheaded by Mehen Finance, facilitates the minting and redemption of tokens directly tied to the United States dollar, distinguishing itself from existing Cardano-based stablecoins like DJED and iUSD, which rely on algorithmic and synthetic models.
Matthew Plomin, a founding partner at Mehen, acknowledged the challenging journey to bring USDM to fruition, attributing significant delays to issues encountered with U.S. banks in 2023. Despite announcing their white paper in November 2022, outlining the necessity for a USD-backed stablecoin on Cardano, Mehen faced setbacks when key banking partners, including Cross River, shifted focus to collaborations with larger players like Circle.
Plomin candidly described these obstacles as a “kick in the nuts delay,” emphasizing the impact of such disruptions on their roadmap. Nonetheless, Mehen has adapted by leveraging Plaid’s fintech infrastructure to manage USD transactions for USDM, enabling seamless minting and burning processes.
By integrating Plaid’s services in August 2023, Mehen has streamlined operations, allowing users to deposit USD to mint USDM tokens and vice versa. Moreover, Mehen is actively pursuing regulatory licenses to expand its services across the UK and Europe, showcasing a commitment to compliance and broader market access.
In anticipation of USDM’s integration across various platforms, including lending protocols and decentralized exchanges, Mehen foresees a gradual onboarding process for institutions, estimating completion within one to two days from the launch date. This development signals a significant step forward for Cardano‘s ecosystem, offering users a stable and reliable means of transacting value on-chain.
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