Bitcoin, the world’s largest and most popular cryptocurrency, is about to launch its first USD-pegged stablecoin, according to recent news. A stablecoin is a digital currency that is tied to the value of another asset, such as the U.S. dollar or gold, to reduce volatility and provide stability for users. Stablecoins are oftentimes utilized as a medium of exchange, a store of value, or a unit of account in the crypto ecosystem.
The Stablecoin That is Coming to Bitcoin
The new stablecoin, called Stably USD (Stably), is created by Stably Corporation, a Seattle-based fintech company that specializes in stablecoin solutions. Stably has partnered with Bitcoin Ordinals (BTO), a layer-2 protocol that enables fast and cheap transactions on the Bitcoin network.
BTO uses a proof-of-stake consensus mechanism and smart contracts to create a scalable and interoperable platform for Bitcoin applications.
Stably USD will be backed 1:1 by U.S. dollars held in a regulated trust company and audited regularly by a third-party firm. Users will be able to mint and redeem Stably USD on the BTO network using Bitcoin as collateral.
It will also be compatible with other BTO-based tokens and applications, such as decentralized exchanges, lending platforms, and payment services.
According to the news, Stably USD aims to become a bridge between the traditional and crypto worlds, offering users the benefits of both. On one hand, Stably USD will have the stability and liquidity of the U.S. dollar, which is widely accepted and trusted around the world. On the other hand, Stably USD will have the speed and security of the Bitcoin network, which is decentralized and censorship-resistant.
Stably Aims to Change Bitcoin
Stably Corporation claims that Stably USD will be the first stablecoin to launch on the Bitcoin network, which has historically lacked native support for smart contracts and tokenization. By leveraging the BTO protocol, Stably hopes to bring more innovation and adoption to the Bitcoin ecosystem, which has been dominated by unpegged cryptocurrencies like Bitcoin itself.
The launch date of Stably USD has not been announced yet, but the news states that it will be available soon on various platforms, including Coinbase, Binance, and Bitfinex. Users who are interested in Stably USD can sign up for early access on the Stably website.