- USDM introduces Cardano to a fiat-backed stablecoin, enhancing its DeFi landscape.
- Mehen Protocol navigates complex regulatory terrain to ensure compliance.
- USDM poised for a November pre-production launch and full mainnet launch in December.
Mehen Protocol, the visionary team behind Cardano’s first fiat-backed stablecoin, recently provided valuable insights into the impending launch of USDM. They shared their journey in navigating the intricate regulatory landscape, the noteworthy technical advancements achieved over the past year, and their upcoming launch plans.
USDM Draws Near to Launch
On October 12, Mehen’s CEO, Steven Fisher, and CFO, Matthew Plomin, engaged in a discussion with AllinCrypto, shedding light on USDM, which is poised to become Cardano’s premiere fiat-backed stablecoin. During the interview, Plomin disclosed the captivating backstory of USDM’s inception, driven by his keen observation of a critical flaw in DJED, Cardano’s initial native stablecoin.
Determined to adhere to regulatory compliance, Plomin, alongside the Mehen team, chose a path akin to the meticulous legal framework of USDC, embarking on a substantial journey in this regard.
Mehen’s CFO revealed that the protocol is collaborating with a prominent attorney specializing in money transmitter laws to navigate the intricate web of regulations within the United States. He further disclosed that the protocol is actively seeking regulatory approval from various states and has registered with the federal government for anti-money laundering (AML) purposes.
The company has initiated contact with regulators in all states except New York, primarily due to the exorbitant fees and stringent regulations in that jurisdiction. Plomin also conveyed that their aspirations extend beyond U.S. borders, as they are exploring opportunities in Puerto Rico, the Virgin Islands, and other jurisdictions to facilitate a successful launch.
When asked about their progress, Mehen CEO Steven Fisher unveiled that USDM has already received approval from 12 states, setting the stage for a pre-production launch scheduled for November and a full mainnet launch anticipated in December.
Significance of this Development
Cardano currently lacks a fiat-backed stablecoin and relies on algorithmic stablecoins like DJED to enhance its DeFi ecosystem. The Mehen protocol is poised to elevate Cardano’s DeFi landscape by introducing a directly redeemable, capital-efficient, and regulator-friendly asset.
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