Cardano Launches Fiat-Backed USDM Amid Tether Dominance

A public blockchain platform, Cardano has introduced its first fully fiat-backed stablecoin, USDM, amid the dominance of Tether USDT and Circle USDC in the $134 billion stablecoin market, according to Coingecko data.

Mehen Finance launched USDM on March 17, USDM allows users to mint or redeem it with the U.S. dollar, distinguishing it from Cardano’s algorithmic and synthetic stablecoins like DJED and iUSD.

Mehen faced challenges, including delays due to issues with U.S. banks in 2023. However, after partnering with Plaid, a fintech firm, they overcame hurdles and now facilitate USDM minting and burning processes.

With plans to expand in the UK and Europe, Mehen is pursuing licenses to broaden its services. Over 2,000 partners are set to integrate USDM, ranging from lending protocols to decentralized exchanges, with onboarding expected by the week of the 18th.

USDM’s launch has been well-received by the Cardano community, marking a significant step in decentralized finance on the network. Despite competition from stablecoin giants like USDT and USDC, USDM’s Cardano exclusivity provides a unique offering in the market.

The issuance and management of USDM are governed by smart contracts and decentralized oracles, ensuring transparency and security. This development signals Cardano’s continued growth in the crypto ecosystem.

Also Read: Tether is Bringing USDT Stablecoin to Celo Blockchain