StableUSD, A New USD-Pegged Stablecoin, Has Just Been Launched
Stablecoins are one of the biggest trends of the crypto market now. After Gemini Dollar (GUSD), TrueUSD (TUSD), Tether USD (USDT) and many other tokens, now is the time for StableUSD (USDS), a new crypto that is set to take Tether’s place as the number one stable crypto coin in the market now.
StableUSD was announced by Stably today, November 1, and you can purchase it right now. The token will be backed by USD as many of the other initiatives and the funds will be secured by the Prime Trust escrow, a regulated trust company from Nevada.
In fact, Prime Trust is making an interesting business out of entering the custodian services as the company is storing the money from several other big firms.
Following the opposite path that Tether followed, the company has affirmed that StableUSD would be completely transparent about how much fiat money the company was holding. The official announcement from the company affirms that they understand that balancing the reserves in real time and showing it to customers is important to get trust.
In order to do it, the company will start to use the live feed from Prime Trust’s API, which has grown in the market partly because it offers these options for its customers. It was also announced that, in order to provide an outside source of trust for the customers, the accounting firm Cohen & Co. would conduct weekly attestation that the fiat reserves of the company matched.
The main reason why the token has decided to follow this formula of openness is because Tether has recently come under fire because it does not disclose how much money the company actually has.
Why use a stablecoin, though? They are good because they are digital, so you can use them more quickly to acquire cryptos and avoid delays caused by banks. To topple Tether and make money from this market, many companies have decided to launch their own stablecoins lately.
USDS Will Use A “Proven Centralized Model”
It looks like crypto is shifting to centralization in 2018 as many companies, including Stably’s new enterprise, will only let people who pass their Know Your Customer (KYC) procedures access the services of the company to generate or to redeem USDS. You might even hold the token, but you can only redeem them if you are registered.
Each contract will be generated with smart contracts and only verified users can transfer funds using them. According to the company, the main advantage of this centralized model is that it works pretty well because it increases the security with the centralization.
You will still be able to use these centralized tokens to buy decentralized ones but their creation and redeeming process will work this way. You will also have the option of using Bitcoin (BTC), Ether (ETH) and Tether (USDT) to buy the tokens.
Do not fear volatility, though, as the cryptocurrency will be converted to USD as soon as the change is done.
The company has been developing the product for the most of 2018 after it received the money via seed funding. The company was able to get half a million USD in April. Kory Hong, the co-founder of the company, has affirmed that the blockchain industry is in a desperate need of some less volatile mediums of exchange to be used for the customers.