First bitcoin stablecoin released as BRC-20 token

BRC-20

The first Bitcoin stablecoin was released as a BRC-20 token. The new technology has already conquered large parts of the user community in recent weeks. The Stabil USD is intended to continue the triumph of user-generated BTC tokens.

First bitcoin stablecoin released as BRC-20 token

The first native Bitcoin stablecoin was recently released as a BRC-20 tokenThe Stably company’s digital product is designed to reflect the US dollar and is called Stably USD (#USD). 

Market leader Tether originally also wanted to start on the Bitcoin blockchain. For technical reasons, a layer 2 solution called Omni was developed before the stablecoin switched to Ethereum and achieved its breakthrough there.

Stable USD is Bitcoin ‘s first native stablecoin . No layer 2 solution is required for its use. Instead, the token is based on the BRC-20 token standard , which emerged from the Ordinals protocol in early March .

“Stably is pleased to announce that we have launched the world’s first US dollar stablecoin on the Bitcoin network.” wrote Stably on Twitter on Thursday.

It is a centralized stablecoin that derives its value from exact backing of real US dollars that Stably deposits from the circulating supply. According to their own statements, the correctness of the reserve is checked every month by an independent body.

The inventor of the BRC-20 standard, Domodata, warned against its serious use when it published its development. It’s just a fun product.

Many memecoins quickly emerged as BRC-20 tokens. But it also quickly became apparent how seriously many users took the idea. The blockchain was pushed to its limit in early May by the massive use of BRC-20 tokens .

Stably USD (#USD) – was kann der Bitcoin-Stablecoin?

Many users have questions after the release of the stable USD (#USD). What can the Bitcoin stablecoin do and what makes it special? Stably wants to add a stable-value token to the world’s largest crypto network.

In addition, the company wants to bring TradFi and DeFi closer together. This should work particularly well with the stablecoin. However, this is only accessible to registered customers who go through a KYC process in which they have to identify themselves.

“We created a stablecoin on top of bitcoin to enable bitcoin trading directly on the blockchain – with a stablecoin built on top of bitcoin.” Explains Kory Hoang, Founder and CEO of Stably.

Domodata, the inventor of the BRC-20 standard, has also known about the idea since the Bitcoin Conference 2023, which took place a few days ago in Miami. According to Hoang, he found the concept funny.

Stably establishes a broad ecosystem in partnership with USDC issuer Centre, SWIFT, as well as multiple payment service providers such as Ramp and MoonPay that can serve as on- and offramp.

This allows customers to make payments with bank transfers or credit cards. Instead of subsequently receiving a bond on a crypto exchange, customers receive the purchased stablecoin directly to their blockchain address.

The Stably USD also exists in ten other networks such as Arbitrum, Stellar or Tezos. The company is currently working on an ORC-20 version. This is similar to the BRC-20 standard, but is intended to improve its technical limits.

More news

Leave a Reply

Your email address will not be published. Required fields are marked *