Crypto Startup Carbon to Launch a Dollar-Pegged Stablecoin CarbonUSD
Carbon became the latest cryptocurrency company to also launch its dollar-pegged stablecoin in an effort to attract large investors to the industry.
Stablecoins have been in the eye of the press for the last few days with Paxos and Gemini launching their stablecoins earlier this week. Carbon became the latest cryptocurrency company to also launch its dollar-pegged stablecoin in an effort to attract large investors to the industry.
CarbonUSD to be unique
The company announced on its website that it has launched its stablecoin, CarbonUSD, an Ethereum-based coin.
Starting September 12, the stablecoin, which the firm stated is compliant with regulation, has been made accessible to institutional account users, hedge funds, traders, and exchanges.
In its press release, the firm stated that it is now looking to get the coin listed on cryptocurrency exchanges.
Even though its launch comes a few days after the launch of the Gemini and Paxos stablecoins, the firm is confident that the coin’s unique algorithm design will make it different from the competition.
Miles Albert, the co-founder of Carbon, commented that when CarbonUSD reaches a market cap of $1 billion, the company would change to a hybrid algorithmic model.
He added that the CarbonUSD will be subject to a third-party review regularly to verify that each token is one-to-one [dollar to token] backed. The company is committed to creating a token that’s transparent, compliant.
Stablecoins seeking transparency due to Tether’s controversy
The leading stablecoin, Tether has been immersed in controversies over the past few months. It has been accused of Bitcoin price manipulation in its Bull Run towards the end of 2017.
There is also concern that not every USDT token is backed by US Dollars as the company claims.
Last year, Tether also revealed that its system was hacked, with more than $30 million US dollars’ worth of BTC stolen. These issues have made it hard for cryptocurrency users to trust it, and other stablecoins.
Companies creating stablecoins are now focused on ensuring that they gain approval from regulatory bodies and undergo auditing regularly.
Gemini and Paxos were both given approval by the New York Department of Financial Services (NYDFS).
The agency will oversee the trading and other activities to ensure that they adhere to anti-money laundering, anti-fraud, and consumer protection measures terms set for them.
On that issue, Albert stated that the firm designed CarbonUSD to be as compliant as possible. David Segura, the project’s chief marketing officer, added that the firm invested time in establishing rime Trust (a blockchain-based trust company).
With Prime Trust, the legal side of CarbonUSD is fully covered. Users that wish to get CarbonUSD will need to make use of fiat currencies deposited through Prime Trust.