New Zealand Dollar-Pegged Stablecoin Launched by Easy Crypto and Labrys
Summary:
The New Zealand dollar-pegged stablecoin, NZDD, has been launched through a partnership between Easy Crypto, a New Zealand-based crypto exchange, and Australian blockchain development firm Labrys. Backed 1:1 with cash in trust, it will be regulated by the New Zealand Financial Markets Authority. Initially available on Ethereum, plans for its expansion are underway. This move is aimed at making it easier for New Zealanders to optimize their profits in crypto markets. Alongside the stablecoin, a self-custody wallet supporting multiple currencies was also introduced. The government of New Zealand follows an agile approach towards cryptocurrency regulations.
In a collaboration between New Zealand's Easy Crypto exchange and Australia's Labrys blockchain development company, a stablecoin pegged to the New Zealand dollar has been launched. According to the two companies' joint statement on November 22, the NZDD will have a 1:1 support with cash held in trust and will be subject to regulation by the New Zealand Financial Markets Authority. Initially available on Ethereum, the NZDD looks forward to expansion to Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase’s Base.
Easy Crypto was compelled to initiate the stablecoin as they perceived that New Zealanders found it challenging to optimize their profits using US dollar-pegged tokens. Janine Grainger, the co-founder and CEO of Easy Crypto, believes that NZDD is a bridge to traditional finance and proudly claimed that it would "Propel New Zealand towards progress, by providing us with a digital, programmable currency capable of performing all functions equivalent to NZD."
In relation to Binance commencing operations in New Zealand following their regulatory approval, the stablecoin was introduced by Easy Crypto. Concurrently, a self-custody wallet supporting multiple currencies secured by multiparty computation cryptography was launched. To replace the seed phrase, parts of the key were shared amongst the user's "trusted social circle."
According to an August report commissioned by the New Zealand parliament, the country has adopted an "agile" strategy towards crypto regulation. It’s suggested that issues should be "attended to as they emerge, and the government should design "comprehensive and consistent instructions for the application of digital assets under existing law.”
Past attempts to launch a stablecoin pegged to NZ dollar feature $NZDs from Australian financial services provider Techemyny in 2021. However, in 2022, after the DFX Finance protocol was hacked in November, the stablecoin's bridge was blacklisted, consequently leaving a significant amount of funds stranded on the Polygon blockchain.
Published At
11/22/2023 2:17:01 AM
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