BitGo to provide custodial services for Cardano-based USDA stablecoin News ▸ Cardano ▸ Stablecoins
BitGo to provide custodial services for Cardano-based USDA stablecoin
Cardano has struggled to get a share of the stablecoin market despite the network's importance to the industry.
2 min read
Updated: Oct. 1, 2024 at 7:16 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
BitGo, a leading digital asset custodian, will offer custodial services for USDA, a Cardano-based stablecoin, according to an Oct. 1 press release.
The collaboration involves BitGo Trust, USDA’s issuer Anzens, and EMURGO, the tech provider behind the Anzens platform. Their combined efforts will focus on creating a secure stablecoin solution for the Cardano blockchain that would also bolster USDA’s security and functionality by integrating it within advanced financial infrastructure.
According to the release, BitGo’s its involvement will strengthen USDA’s security and efficiency, aligning with Anzens’ goal of bridging traditional finance and crypto ecosystems. The partnership will streamline and ensure compliance for minting, burning, and custody services.
Stablecoins remain vital to the crypto industry due to their extensive use in remittances and payments. These digital assets are designed to maintain value, shielding users from the volatility typical of other cryptocurrencies. As of Oct. 1, stablecoins had a $173 billion market cap, reflecting their significant relevance in the crypto industry.
Despite their importance, Cardano has struggled to capture a significant market share, with stablecoins issued on Ethereum and TRON controlling nearly 90% of the market, according to data from DeFiLlama.
USDA’s comeback
Meanwhile, this development occurs as USDA attempts to make a comeback after a hiatus in 2023. At the time, the Anzens team abruptly paused communication with the community because of the regulatory uncertainty surrounding the stablecoin sector.
However, EMURGO revealed that the digital asset would launch under new ownership later this year. According to information on Cardano’s Forum, the USDA stablecoin would be launched by Encryptus, a Dubai-based platform that was established in 2020.
According to the platform:
“[Encryptus] facilitates seamless buying and selling of crypto assets, offering conversion to local currencies. Encryptus is compliance-centric, holding a European license, VASP status in Lithuania, and boasting the largest payout network spanning over 80 countries.”
The firm further stated that users can buy and sell USDA via the Anzens website after completing know-your-customers (KYC) verification. USDA will also be available through select partners and redeemable 1:1 for USD. Users in over 80 countries will have access to the stablecoin in their local currencies.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
BitGo
BitGo is a market leader in institutional-grade cryptocurrency investment services, providing institutional investors with security, compliance, and custodial solutions for blockchain-based currencies.
EMURGO
EMURGO Ventures is a wholly owned investment subsidiary of parent company EMURGO Ptd.