During a recent conversation on X Spaces, Fahmi Syed, president of the Midnight Foundation, revealed that the foundation has received a formal legal contract from a prospective "stablecoin partner."
The deal is not yet finalized. The contract is currently under legal review, "Hopefully, if we can get it signed," Syed cautiously said.
If signed, an official public announcement is expected in the "coming days and weeks."
The stablecoin will likely leverage Midnight's ZK tech for selective disclosure (hiding balances/transactions while allowing regulatory compliance).
This comes just two weeks after the launch of the Midnight Network (NIGHT), which took place on Dec. 8.
Thousands of Cardano users who received the "Glacier Drop" are currently in a "thawing" period where their tokens unlock over 360 days.
Cardano stablecoins options
USDM is currently the most trusted "USDC alternative" on Cardano. It is regulatory compliant in the US, meaning it is not algorithmic.
At the same time, USDA is still struggling with deep liquidity. For instance, a trader lost millions due to "slippage" because there wasn't enough USDA in the liquidity pools to handle their massive trade.
This is the "decentralized" option. It does not use fiat money in a bank. Instead, it uses ADA as collateral (you lock up $4-$8 of ADA to mint $1 of DJED).
It is worth noting that existing stablecoins (USDM/USDA) live on the public Cardano chain. If you move them to Midnight to make them private, the issuers (Mehen/Anzens) need to legally agree to that.
Right now, you have to "wrap" these tokens to get them onto Midnight. A parter (if the deal goes through) would issue the stablecoin natively on the privacy-focused blockchain.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team