BitGo, a prominent digital asset custodian, has announced that it will provide custodial services for USDA, a stablecoin based on the Cardano blockchain. This collaboration involves BitGo Trust, USDA’s issuer Anzens, and EMURGO, the tech provider behind the Anzens platform. The main goal of this partnership is to create a secure stablecoin solution for Cardano that will enhance USDA’s security and functionality by integrating it into advanced financial infrastructure.
According to the press release, BitGo’s involvement in this project will strengthen USDA’s security and efficiency, aligning with Anzens’ objective of bridging traditional finance with the crypto ecosystem. The partnership will focus on streamlining and ensuring compliance for minting, burning, and custody services. Stablecoins play a crucial role in the crypto industry, as they are widely used for remittances and payments. These digital assets are designed to maintain a stable value, protecting users from the volatility typically associated with other cryptocurrencies. As of October 1st, stablecoins had a total market capitalization of $173 billion, highlighting their significant impact on the crypto market.
Despite the importance of stablecoins, Cardano has struggled to gain a substantial market share, with the majority of stablecoins being issued on Ethereum and TRON, which control nearly 90% of the market, according to data from DeFiLlama. The collaboration between BitGo, USDA, and EMURGO aims to change this trend by offering a secure and efficient stablecoin solution on the Cardano blockchain, which could potentially increase Cardano’s market share in the stablecoin sector.
The announcement of BitGo’s involvement in providing custodial services for USDA comes at a time when USDA is seeking to make a comeback after a hiatus in 2023. During this period, the Anzens team halted communication with the community due to regulatory uncertainties surrounding the stablecoin sector. However, EMURGO has revealed that USDA will be relaunched under new ownership later this year. The stablecoin will be launched by Encryptus, a Dubai-based platform established in 2020, which facilitates the seamless buying and selling of crypto assets and offers conversion to local currencies.
Users will be able to buy and sell USDA through the Anzens website after completing the necessary know-your-customer (KYC) verification process. Additionally, USDA will be available through select partners and can be redeemed 1:1 for USD. The stablecoin will be accessible in over 80 countries, allowing users to transact in their local currencies. Overall, the collaboration between BitGo, USDA, and EMURGO is expected to enhance the security and functionality of USDA, while also increasing Cardano’s presence in the stablecoin market.
