- The stablecoin USDM launched on the Cardano network by Mehen Finance on March 17, backed by fiat US dollars and utilizing fintech company Plaid.
- USDM aims to acquire money transmitter and VASP licenses to operate legally across jurisdictions as regulations increase.
- The launch comes as the stablecoin market sees a resurgence, with the market cap reaching $1.46 trillion in October 2022, providing an opportunity for USDM.
The Cardano blockchain network has welcomed its first fiat-backed stablecoin, USDM, launched by Mehen Finance on March 17th. This launch provides a crucial stablecoin presence that Cardano has lacked compared to other major blockchain networks.
What is USDM
USDM allows holders to mint and redeem assets through fiat US dollars by utilizing the fintech company Plaid. USDM aims to acquire money transmitter licenses and VASP licenses to operate legally across jurisdictions.
Stablecoin Market Sees Surge
The launch of USDM comes as the broader crypto market witnesses an uptrend in the stablecoin sector. The market cap recently reached $1.46 trillion, the highest point since October 2022. This marks a major turnaround following the collapse of Terra’s UST stablecoin. Tether’s USDT remains the dominant player with over $100 billion in circulation.
Conclusion
The introduction of USDM provides a long-awaited stablecoin presence on the Cardano network. As regulations increase across the sector, USDM’s commitment to licenses exhibits an intention for legal compliance. The project’s launch comes at an ideal time to capitalize on the stablecoin market’s resurgence.
