Cardano Ecosystem





Fiat Backed Stablecoin USDM Launches on Cardano

Last week Mehen announced the launch of the USDM stablecoin on the Cardano blockchain.

Fiat Backed Stablecoin USDM Launches on Cardano

Last week Mehen announced the launch of the USDM stablecoin on the Cardano blockchain. This marks the launch of the first fiat-backed stablecoin and will bring a capital efficient US Dollar based stablecoin option to Cardano DeFi. This article delves into Mehen, USDM, and more.

USDM Launch

USDM the first fiat-backed US Dollar Stable coin on Cardano went live on March 16th, 2024. The protocol launched was marked with a launch party in the Mehen discord and an inaugural mint of 420.69 USDM as voted on by the Cardano community on X. Cardano is now the first major layer 1 blockchain that has a fiat-backed stablecoin that cannot be frozen, clawed back, and transactions cannot be censored, highlighting the power of Cardano native assets.

USDM is currently in a limited release where only institutional investors in the first wave of licensed states are able to mint the stablecoin. Any USD minted over the weekend will be appearing sometime early this week, due to the time required for bank transfers to settle. Interested parties can contact the Mehen team at [email protected] to participate in the initial USDM release.

About USDM

USDM by Mehen is the first fiat-backed stablecoin on the Cardano blockchain. It operates under strict regulatory standards, acquiring necessary state licenses in the U.S. to ensure compliance and protect users. Mehen has also included transparent, security-enhancing features such as third-party oracle verification for minting and burning processes. This ensures that USDM issuance is always backed by equivalent verifiable reserves, promoting trust and security for all users in the ecosystem.

How Will USDM Benefit Cardano?

The introduction of a capital-efficient, fiat-backed stablecoin to Cardano’s DeFi ecosystem could offer several advantages over the existing over-collateralized, crypto-backed stablecoins like Djed and iUSD. By reducing the need for excessive collateral, a fiat-backed stablecoin would unlock capital, thereby enhancing liquidity and enabling more efficient financial transactions on the platform. Additionally, the more direct connection to fiat could simplify DeFi for users, potentially attracting a broader demographic, including those from traditional finance sectors. Furthermore, the alignment with regulatory standards and the inherent stability of a fiat-backed approach could lead to increased institutional adoption. Institutions are more likely to invest in platforms that offer secure, stable, and regulatory-compliant investment vehicles, thereby driving growth and lending more credibility to Cardano’s DeFi offerings.

What’s Next Mehen?

Mehen is nearing the completion of its onboarding process with FV Bank, which has been ongoing for four months. FV Bank, located in Puerto Rico, specializes in providing enterprise banking solutions to Small and Medium Enterprises (SMEs). Upon finalizing the onboarding, FV will enable Mehen to support transactions in USDC and handle US ACH payments via Plaid. Notably, FV Bank has established its footing in the web3 space, offering digital asset custody services and facilitating direct deposits in USDC.

Mehen is also advancing towards the final stages of onboarding with several offshore ‘bank-as-a-service’ partners. This development is poised to significantly broaden Mehen’s operational reach, enabling the launch in numerous countries and supporting multiple currencies including EUR, GBP, USD, and CHF, with provisions for instant conversion to USD.

In a conversation with James Meidinger, the Chief of Staff at Mehen, about the company’s future post-USDM launch, he indicated an ongoing commitment to regulatory compliance and expansion. James stated: “Yes, we are actively working on all 50 contiguous states; some will require a bit of time, but we have a great legal firm working daily on this issue since before we even received catalyst funding.” This illustrates Mehen’s strategic approach to navigating the complex legal landscape in the United States to ensure widespread availability and compliance of their services.


The introduction of the USDM stablecoin by Mehen on the Cardano blockchain marks a significant milestone, establishing a new level of capital efficiency and regulatory compliance within the ecosystem. This initiative paves the way for broader adoption, particularly from institutional investors, enhancing liquidity and accessibility in Cardano’s DeFi space. As Mehen progresses with banking partnerships and regulatory approval, USDM is set to catalyze a transformative phase in decentralized finance.


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