Cardano, a Layer 1 smart contract network that aims to bring security, scalability and sustainability to decentralized applications, has achieved a historic milestone with the launch of Mehen USDM, a fiat-backed stablecoin.
Cardano, a Layer 1 smart contract network that aims to bring security, scalability and sustainability to decentralized applications, has achieved a historic milestone with the launch of Mehen USDM, a fiat-backed stablecoin.
Mehen Token (USDM) is a digital store of value token issued by Mehen Finance that is 1:1 convertible to US dollars. USDM, as Cardano’s native token, can be transferred on the Cardano blockchain without the need for additional smart contracts.
in a cheep Announcing the arrival of the USDM stablecoin to Cardano, Mehen stated that institutional clients will immediately begin the onboarding process, which could take a day or two. This means that USDM will gradually arrive on-chain during the week of March 18.
As Cardano expands its ecosystem and attracts more users and developers, the launch of USDM is a defining moment in the platform’s march toward widespread use.
Surprisingly, the USDM token is the first of its kind on Cardano. Unlike iUSD and DJED, Mehen USDM is neither algorithmic nor synthetic, but is fully backed by US dollars on a 1:1 ratio. Users will deposit dollars (USD) into their Mehen account, which Mehen will store in a separate account for token holders. Once the transactions are completed, the user can mint the equivalent amount of USDM cryptocurrency tokens.
The last quarter saw a notable expansion of the ecosystem, with the value of the Cardano stablecoin increasing by 37% quarter-on-quarter and 673% year-on-year. With the debut of the Mehen USDM stablecoin, there are great growth prospects in the Cardano stablecoin market.
ADA Price Action
At the time of writing, ADA was down 9.54% in the last 24 hours to $0.66, reflecting the broader market declines.
According to crypto analyst Ali, Cardano’s price action so far resembles the pattern seen from 2018 to 2021. Ali said that if this fractal persists, ADA may consolidate in the range of $0.55 to $0.80 in the coming weeks, followed by an increase to $1.70. Following this rise, a period of consolidation can be expected, paving the way for a rally to $5.
