- Cardano based stablecoin USDA will go live in 2023, according to an announcement by Emurgo, one of the developers of ADA.
- The new stablecoin USDA will be backed by fiat assets to merge the benefits of Cardano ecosystem with the stability of the US Dollar.
- Analysts are bullish on Cardano and predicted a rally in the Ethereum-killer altcoin.
Cardano ecosystem’s first regulatory compliant fiat-backed stablecoin USDA is being launched. Emurgo, one of the developers behind the altcoin Cardano announced the launch of the stablecoin project in 2023.
Analysts have revealed a bullish outlook on the Ethereum-killer altcoin and predicted a run up to the $0.38 level.
Also read: Ethereum whales scoop up the altcoin as ETH price hits the $1,200 level
Cardano based stablecoin USDA ready for launch in 2023
Cardano ecosystem could have its regulatory compliant, fiat-backed stablecoin USDA in 2023. Emurgo, the official commercial arm of the Cardano blockchain, announced the launch of the first fully-regulated stablecoin.
Vineeth Bhuvanagiri, Emurgo’s Fintech Managing Director was quoted as saying:
The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.
Cardano’s stablecoin USDA will be pegged on a 1:1 ratio with the US Dollar. In the aftermath of the FTX exchange collapse and liquidity crisis, stablecoins USDT and USDD suffered a temporary depeg. This raised a concern among regulators worldwide.
Cardano ecosystem’s stablecoin is likely to tackle the concerns surrounding depeg and transparency concerns related to USDT and USDC. Experts have criticized the transparency of USDT reserves and collateral, therefore the launch of a fully regulated and compliant stablecoin is likely to gain popularity in the ecosystem.
Users can get theirs hands on USDA, in this manner
Following the launch of Cardano ecosystem’s stablecoin USDA, users will have an option to tokenize their USD (fiat) into USDA through credit/debit cards, wire transfer or conversion of ADA.
Emurgo revealed plans to enable the conversion of other stablecoins USDT and USDC into USDA, post the regulation compliant stablecoin’s launch. Emurgo recently partnered with an undisclosed US-based regulated financial services firm as the banking partner to issue USDA and ensure that the stablecoin was regulatory compliant.
Cardano Price Prediction: Impact of recent developments
Analysts evaluated Cardano’s four-hour price chart and noted that bulls have successfully taken over the Ethereum-killer altcoin. The four-hour price chart reveals that Cardano was in control of bulls for 12 hours straight. Editah Patrick, a leading crypto analyst notes that bulls pushed Cardano price to $0.3275.
ADAUSD price chart
Cardano price crumbled under selling pressure in response to the FTX contagion that spread throughout the crypto ecosystem. Cardano started an early recovery since the altcoin was not among tokens listed on the now defunct cryptocurrency exchange, FTX. The RSI indicator reads 43, signaling more power to the bulls and a strong uptrend.
Akash Girimath, a crypto analyst at FXStreet argues that Cardano price could target the $0.379 level, if it breaks past hurdles at the $0.336 and $0.339 levels. The expert is bullish on a rally in Cardano, in light of the recent positive developments.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.