Verified USD Foundation, a non-profit and community-based organization that is working on revolutionizing the stablecoins market, has announced the launch of Verified USD (USDV). According to the company, the USDV is a community-driven stablecoin that is fully backed by the United States Treasury Bills (T-bills) and provides complete on-chain transparency of its reserves. Notably, the USDV stablecoins are based on the Omnichain network and fully compatible with the Ethereum ecosystem through the ERC-20 standard. The USDV stablecoins intend to compete with legacy projects like Tether USDT and Circle USDC that have dominated the web3 industry. Furthermore, each USDV is redeemable at a ratio of 1:1 to the United States dollar through verified reserves.
The USDV project has been built on the principle of fair and transparent distribution of rewards to the token minters and the community at large. Moreover, the Verified USD Foundation tapped into ColorTrace technology, a novel value attribution that was built by LayerZero, to ensure a fair and transparent distribution process.
“The applications of the ColorTrace algorithm to existing RWA-backed assets – like stablecoins – are exciting and have the potential to create a more fair and equitable distribution across all contributors to an ecosystem’s success,” Ryan Zarick, the Chief Technology Officer (CTO) and Co-Founder of LayerZero noted.
Worth noting that the USDV stablecoins have also been integrated with LayerZero’s OmniChain Fungible Tokens (OFT) standard that enables seamless interoperability with multiple chains including BNB Smart Chain, Avalanche (AVAX), Ethereum (ETH), Arbitrum (ARB), and Optimism. Additionally, the USDV stablecoins are built using the LayerZero technology to support seamless compatibility with over 40 blockchains.
Closer Look at USDV Stablecoins and the Market Outlook
The stablecoins market has grown to a major industry attracting institutional investors from around the world in the past few years. More governments around the world are formulating clear stablecoins regulatory frameworks to ensure an orderly market and avoid a repeat of the Terra Luna UST that wiped out over $30 billion earlier last year. Notably, the USDV stablecoins project is closely working with dozens of decentralized and centralized financial platforms to ensure sustainable adoption. Moreover, USDV is more focused on being a medium of exchange rather than ownership or investment in any entity.
At its launch, the USDV stablecoins were integrated with 23 different centralized and decentralized financial platforms. According to Justin Buitendam, the global head of institutional sales at BIT exchange, the USDV stablecoins hold immense potential by tapping on real-world assets (RWA) tokenization.
“We firmly believe that stablecoin liquidity could be one of the clearest ways that tokenization intersects with the broader crypto economy as part of the next market cycle. USDV’s competitive advantage, distributing rewards for value creators on-chain, is a testament to its innovative approach,” Buitendam noted.
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