Stably, a Stablecoin-as-a-Service (SCaaS) provider, has unveiled a major innovation in the world of cryptocurrencies. This is Stably USD (#USD), the first stablecoin based on the Bitcoin network.
Thanks to the Taproot update, this new stablecoin opens up a range of possibilities for Bitcoin users. In this article, we explore how Stably USD works on the Bitcoin blockchain and its impact on the cryptocurrency ecosystem.
An expansion of the Bitcoin ecosystem.
The main news is that Stably USD (#USD) becomes the first native BRC20 token on the Bitcoin blockchain. This achievement is a result of the Taproot update, rolled out in November 2021.
Stably, a Seattle-based fintech company, has pioneered this innovation in the cryptocurrency market. With Stably USD, Bitcoin users can now enjoy the benefits of a stablecoin backed by the US dollar.
BRC-20 tokens and their central role.
BRC-20 tokens play a crucial role in this new landscape. Using ordinal inscriptions, these tokens add data to individual Bitcoin satoshis, thus allowing the representation of a wide range of entities on the blockchain.
Until now, stablecoins were limited functionality in Bitcoin. With the arrival of Stably USD, this limitation is overcome and the door is opened to new opportunities in the decentralized finance (DeFi) ecosystem that operates on Bitcoin.
Guarantees and support of Stably USD.
Stably ensures that each #USD token is backed one-for-one by US dollars held by a US-regulated custodian. These funds are held in a collateral account for the benefit of the token holders, who have gone through the KYC/AML verification processes.
In addition, monthly reports will be established by external witnesses to ensure the full guarantee of USD tokens with US dollars. This transparency and security provide trust to users and encourage the adoption of Stably USD across different platforms and countries.
To end.
The introduction of Stably USD on the Bitcoin network is a significant event in the world of cryptocurrencies. Backed by the US dollar and based on Bitcoin, this stablecoin expands the usability of the leading cryptocurrency and adds a new dimension to the decentralized finance ecosystem.
The implementation of Stably USD thanks to the Taproot update is a crucial milestone for the mass adoption of Bitcoin and opens the doors for further integration of stablecoins into the cryptocurrency environment.
