Former Consensys employee, Jack Jia, who is now the co-CEO of Stable.com, has launched a new stablecoin called USD3. Despite the current lack of a regulatory framework and uncertainty in the market, Jia aims to create a “payments-first” stablecoin that is backed 1:1 by the U.S. dollar. This stablecoin, USD3, is designed to serve as an extension of the U.S. dollar for global commerce and Web3. Jia made the announcement at the Consensus 2024 event in Austin, Texas.
USD3 is built on multiple blockchain platforms, including Ethereum, Polygon, Avalanche, and Linea. Stablecoins are digital assets that are pegged to a reserve asset, such as a fiat currency or a commodity. They offer stability and are commonly used by crypto traders for trading, borrowing, and lending in the decentralized finance space. Additionally, stablecoins provide a way for individuals in countries without access to the U.S. dollar to access its stability.
The main purpose of stablecoins is to combine the advantages of digital currencies, such as fast transactions and security, with the stability of traditional currencies. Jia stated, “We have learned from the mistakes of previous players and know what they lack today. Our vision for USD3 is future-proof. Our plan is to achieve mass adoption of our stablecoin and become the foundation for a new global payments system.”
Tether (USDT) is currently the most well-known stablecoin, widely used in the crypto market and pegged to the value of the U.S. dollar. It is used for trading, transfers, and as a store of value within the crypto ecosystem. Another notable stablecoin is USD Coin (USDC).
There have been discussions regarding the safety of stablecoins, particularly Tether’s USDT and USD Coin USDC. To address concerns and encourage wider adoption, the U.S. introduced the Lummis-Gillibrand Payment Stablecoin Act on April 17, aiming to provide regulatory clarity for the stablecoin market. Similarly, in Europe, the Markets in Crypto Assets Regulation (MiCA) requires issuers of stablecoins to comply with regulations, although the lack of clarity has led to some exchanges delisting Tether’s USDT.
Overall, the introduction of regulatory frameworks for stablecoins is expected to boost confidence and lead to increased adoption. The U.S. credit ratings firm S&P Global believes that changes in rules under the Lummis-Gillibrand Payment Stablecoin Act could significantly increase stablecoin adoption in the U.S. In the ever-evolving landscape of stablecoins, Jia and his team at Stable.com aim to create a stablecoin that is future-proof and can contribute to the development of a new global payments system.
