Stably, a venture-capital backed market startup, announced that it has launched its own stablecoin, called USDS and that the coin would be listed on Bittrex. Upon launch, users can begin trading and depositing the tokens.
New Listing Update: The StableUSD market is open, and trading will begin shortly on https://t.co/cGleg0K2Wi. For more information about StableUSD (USDS) visit: https://t.co/8Yi77S63LV @StablyCoin #Bittrex #USDS pic.twitter.com/hyzLpjE2Rx
— BittrexUS (@BittrexUS) December 6, 2018
One of the big questions that arises with this stablecoin is how it remains at $1. The reasoning is that it is pegged one-to-one with USD, which means that whenever users want to purchase or redeem the coin with Stably, they can do so. The ratio may change on the open market, though because of changes in market forces due to demand and liquidity.
The platform also recognizes that with a fiat-backed stablecoin, there needs to be a high amount of transparency to promote trust. The platform has been working to ensure that it has established groundwork in preparation, transparency, and regulation for the coin’s future.
It has also hired a third-party auditor to provide regular insight on the platform’s reserve balances. Further, the platform is planning on offering a real-time view of its reserve balance on its redeem/purchase platform.
Those who are interested in purchasing and redeeming USDS can do so through the platform’s website. Upon starting through the process, a Stably on-boarding team member will reach out to help the user through. The minimum amount required for creation/redemption is $5,000. Once the platform goes live, the minimum will decline to $50.
There are no fees to purchase or redeem Stably coin, except those associated with one’s bank or custodian for depositing and receiving USD. The platform’s fee schedule may change though, but it will provide notice if such changes are to occur.
One great quality about StableUSD is that it mitigates the volatility that the Bitcoin market has seen because it is tied to the dollar. This enables crypto-traders to preserve their wealth when the market is volatile.