3 - 5 minute read
Bitcoin’s growing on-chain economy is set to receive a new dollar-backed stablecoin. The Stably USD token aims to become a preferred currency for traders dealing in the various assets built on bitcoin, according to Stably, the company behind the token. The startup claims that its token can make trading in ordinals more cost-effective and efficient than using fiat or even bitcoin itself. Stably USD is the latest token to be created using the ordinals protocol, which has grown rapidly since its initial conception as a method of inscribing NFTs on bitcoin’s smallest denomination, the satoshi.
The protocol has since been used to create a variety of tokens, including Stably USD, which Stably claims will make trading in all ordinals easier if adopted. Currently, traders in ordinals pay either by paying a fee to on-ramp stable fiat currency or using volatile bitcoin. Stably says its stablecoin will solve both issues by retaining a stable value and remaining accessible on-chain. The company’s documentation indicates that Stably USD’s fiat backing is held with Prime Trust. Redeemers will need to undergo a KYC and AML process to swap their stablecoins for the underlying dollar value.
Stably’s first bitcoin-linked stablecoin will need to fare better than its other stablecoin products if it is to succeed in the long term. StableUSD (USDS), its stablecoin in the ethereum ecosystem, has only 752 holders and a market cap of $264,000, making it irrelevant when compared to market leaders Tether and USDC.
Despite this, Stably believes it can penetrate a deeper market with its ordinals stablecoin. When it created the token on May 22, it gave it a maximum supply of 69,420,000,000,000. The potential implications of Stably USD’s entry into the market are significant. The stablecoin’s main advantage is that it provides traders with a stable value, which is a crucial factor when dealing with volatile assets. If the token is well-received, it could help to bring more liquidity to the ordinals market and improve the efficiency of trading.
As with any new asset, traders should exercise caution and perform their due diligence before investing. However, Stably USD could offer traders an opportunity to transact in ordinals more efficiently and cost-effectively than ever before. The success of the stablecoin will depend on whether it can gain significant traction in the market and whether it can compete with established stablecoin offerings like Tether and USDC. If it does, it could signal a new era of stability for the ordinals market.
The Bottom Line
Stably USD, a new dollar-backed stablecoin, has been created to make trading in ordinals cheaper and more efficient. The stablecoin’s key advantage is its stable value, which is essential when dealing with volatile assets. Stably USD’s entry into the market could bring more liquidity to the ordinals market and improve the efficiency of trading. However, traders should exercise caution and perform their due diligence before investing as the success of the stablecoin will depend on whether it can gain significant traction in the market and compete with established stablecoin offerings like Tether and USDC.
