- Cardano based stablecoin USDA will go live in 2023, according to an announcement by Emurgo, one of the developers of ADA.
- The new stablecoin USDA will be backed by fiat assets to merge the benefits of Cardano ecosystem with the stability of the US Dollar.
- Analysts are bullish on Cardano and predicted a rally in the Ethereum-killer altcoin.
Cardano ecosystem’s first regulatory compliant fiat-backed stablecoin USDA is being launched. Emurgo, one of the developers behind the altcoin Cardano announced the launch of the stablecoin project in 2023.
Analysts have revealed a bullish outlook on the Ethereum-killer altcoin and predicted a run up to the $0.38 level.
Cardano based stablecoin USDA ready for launch in 2023
Cardano ecosystem could have its regulatory compliant, fiat-backed stablecoin USDA in 2023. Emurgo, the official commercial arm of the Cardano blockchain, announced the launch of the first fully-regulated stablecoin.
Vineeth Bhuvanagiri, Emurgo’s Fintech Managing Director was quoted as saying:
The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.
Cardano’s stablecoin USDA will be pegged on a 1:1 ratio with the US Dollar. In the aftermath of the FTX exchange collapse and liquidity crisis, stablecoins USDT and USDD suffered a temporary depeg. This raised a concern among regulators worldwide.
Cardano ecosystem’s stablecoin is likely to tackle the concerns surrounding depeg and transparency concerns related to USDT and USDC. Experts have criticized the transparency of USDT reserves and collateral, therefore the launch of a fully regulated and compliant stablecoin is likely to gain popularity in the ecosystem.
Users can get theirs hands on USDA, in this manner
Following the launch of Cardano ecosystem’s stablecoin USDA, users will have an option to tokenize their USD (fiat) into USDA through credit/debit cards, wire transfer or conversion of ADA.
Emurgo revealed plans to enable the conversion of other stablecoins USDT and USDC into USDA, post the regulation compliant stablecoin’s launch. Emurgo recently partnered with an undisclosed US-based regulated financial services firm as the banking partner to issue USDA and ensure that the stablecoin was regulatory compliant.
Cardano Price Prediction: Impact of recent developments
Analysts evaluated Cardano’s four-hour price chart and noted that bulls have successfully taken over the Ethereum-killer altcoin. The four-hour price chart reveals that Cardano was in control of bulls for 12 hours straight. Editah Patrick, a leading crypto analyst notes that bulls pushed Cardano price to $0.3275.
ADAUSD price chart
Cardano price crumbled under selling pressure in response to the FTX contagion that spread throughout the crypto ecosystem. Cardano started an early recovery since the altcoin was not among tokens listed on the now defunct cryptocurrency exchange, FTX. The RSI indicator reads 43, signaling more power to the bulls and a strong uptrend.
Akash Girimath, a crypto analyst at FXStreet argues that Cardano price could target the $0.379 level, if it breaks past hurdles at the $0.336 and $0.339 levels. The expert is bullish on a rally in Cardano, in light of the recent positive developments.