Canada has released the second stablecoin, reports Finance Yahoo, citing ACCESSWIRE. The new volatility-free crypto is dubbed CUSD and it is pegged to USD unlike its forerunner CADT.
Canada gives the crypto world another stablecoin
Stablecoins are largely preferred by crypto traders and investors these days as these assets are protected from the roller coaster of volatility by being anchored to physical assets, such as leading fiat currencies.
Stablecoins are claimed to be backed by fiat on a 1:1 ratio. Still, the most popular stable crypto Tether (USDT) is a surrounded by controversy and mistrust of many who are doubtful about each USDT being backed by a US dollar. Comments to regular reports of the Whale Alert Twitter account about Tether issuing more USDT are a typical example of that.
Recently, Canada has also got on the bandwagon of stablecoins. On July 1, the Canada Day, it released the first stablecoin CADT backed by the Canadian dollar. It was developed by BVCI (Blockchain Venture Capital Inc.).
Now, the company has kicked off another one, this time backed by USD – CUSD.
Based on Ripple and Ethereum chains
BVCI works in the sphere of DLT research and development. It has created its own BVC-chain based on both Ethereum chain and XRPL. The company has also created a mobile app BvcPay that can be used as a crypto wallet, DLT explorer and a platform for regular (and OTC) crypto trading.
CUSD is backed by USD that is put on escrow accounts run by a financial institutions based in the US.