Stable.com Unveils USD3, a New 1:1-Backed Stablecoin Seeking Regulatory Clarity
Summary:
Stable.com, a fintech firm co-founded by former Consensys staffer Jack Jia, is set to introduce a new 1:1-backed stablecoin, USD3. This stablecoin is designed for interoperability and simplified DApp integration across platforms like Ethereum, Polygon etc. To ensure the trustworthiness of USD3, the firm will maintain a 1:1 collateralization with USD or equivalent funds, and will regularly undergo internal and external audits. The co-CEOs also discussed the need for clear regulatory framework for the long-term success of stablecoins.
Stable.com, an up-and-coming fintech firm founded among others by Jack Jia, an ex-Consensys staffer, is on the verge of introducing a novel 1:1-backed stablecoin. Sandwiched with an inherent programmatic layer, the stablecoin, referred to as USD3, is primed to debut on Ethereum, Polygon, Avalanche, and Linea. USD3 aims to provide a streamlined methodology of transaction for developers and businesses while simplifying Decentralized Application (DApp) integration.
In a conversation with Cointelegraph, Jack Jia, the co-CEO of the venture, explained the various steps to garantuee the safety and reliability of USD3. Stable.com is, according to Jia, a duly regulated financial organization in the United States boasting an expansive compliance program conceived by seasoned industry professionals. USD3 will maintain a twenty-four hour 1:1 collateralization with USD or equivalent funds and will be exposed to regular internal and external audits for the sake of transparency and compliance.
Jia also addressed, along with co-CEO Jamal Rees (also, an ex-Head of Stablecoins at Unlimit), the inherent risks and problems confronting the launch of a stablecoin in today's market. Jia expressed concern over the lack of clarity in the global regulation status quo, saying a clear and rigid regulatory infrastructure is key to the long-term viability of stablecoins.
In lines with the co-CEO, Nick Van Eck, Agora CEO, also voiced concern recently that the stablecoins bearing yields are under greater risk of being labelled as securities as they aren't essentially money or stablecoins. When asked about how Stable.com will tackle the usual challenges plaguing other Stablecoin projects, Jia said the platform will have access to a powerful financial framework. This ensures quick and convenient onboarding of users from around the globe and facilitates the purchasing or selling of USD3 at nominal fees.
This burgeoning sector of stablecoins resonates with Dan Romero, co-founder of Farcaster, who recently advocated for "a stablecoin payments app" for freelance workers based in the United States. Romero expressed concern for 1099 workers who currently face increased transaction fees from Venmo and suggests this as a possible solution.
Published At
5/29/2024 9:45:00 PM
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