Mehen Finance Plans April "Retail Rollout" for Cardano's New Stablecoin, USDM
Summary:
Mehen Finance, the company behind Cardano's new stablecoin USDM, anticipates a public "retail rollout" of the currency-backed stablecoin as early as next month. Currently, the stablecoin is only available to institutional users. The company is located in New York and has license approvals from 17 U.S. states with plans to secure more licenses in Europe and the UK later in the year. Notably, the USDM's reserve is stored in government-only money market mutual funds at Fidelity and Western Asset Management, and isn't subject to freezing, setting it apart from rival stablecoins.
Mehen Finance, the company responsible for Cardano's new stablecoin USDM, plans for a widespread "retail launch" of its currency-backed stablecoin as soon as the coming month. USDM, officially debuted on Cardano on March 17, is currently accessible exclusively to institutional users. Matthew Plomin, Mehen Finance's Founding Partner, indicated to Cointelegraph that the planned retail introduction probably happens in April. Plomin added, referring to the label they use internally, that they're in a restricted launch phase, termed as 'Live main-net ecosystem early-rollout'. According to him, institutions from qualifying jurisdictions are now eligible to join the platform and start creating the stablecoin.
Describing about USDM, Plomin mentioned that it is akin to other fiat-backed stablecoins, but with an integral feature that averts over-minting. The reserve of USDM gets reported straight to Charli3, Cardano's designed decentralized oracle. This model which integrates data from Charli3 oracle into the coin's smart contract, ensures traceable real-time transfers, Plomin added. He asserted that over-minting is impossible as the independently-reported oracle value governs the mintable amount of the USDM token.
Mehen had stated last year that, unlike Circle's USD Coin (USDC) and Tether (USDT), USDM would be non-freezable. This trait, argues Cardano Curation's founder Caleb Montiel, makes USDM a superior stablecoin. Nevertheless, not being able to freeze USDM on-chain could be a drawback, warns crypto observer Vanessa Harris, as regulators could freeze USDM bank accounts, which might jeopardize USDM's peg.
Mehen is located in New York, a state known for its financial services regulators' past probes and actions against some of the largest industry players. USDM's reserve, as per Plomin, is stored in government-only money market mutual funds at Fidelity and Western Asset Management, underscoring that they are not functioning as banks. Currently, early institutional users are exchanging US dollars for USDM at a 1:1 ratio via wire transfer.
Mehen has secured license approvals from 17 U.S. states, with more anticipated and plans to seek money transmitter and virtual asset service provider licenses in Europe and the United Kingdom later this year.
In other news, Plomin disclosed that Mehen anticipates its first investment soon through equity crowdfunding instead of a token sale. He commented that securities offered under regulated crowdfunding are globally accessible, and they are dedicated to tokenizing their Series A shares on Cardano. This investment raise is expected to happen on the crowdfunding platform ChainRaise.
Published At
3/19/2024 6:38:37 AM
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