Stably Launches StableUSD (USDS) Stablecoin With Cash Reserves Audited In Real-Time

The battle to conquer the stablecoin ecosystem just got fiercer with the entry of yet another asset-backed crypto, StableUSD (USDS).


The battle to conquer the stablecoin ecosystem just got fiercer with the entry of yet another asset-backed crypto, StableUSD (USDS).

There are several price-stable coins in the market, all with varying degree of competitiveness against the dominant but controversial Tether (USDT).

One of the latest additions to a field that is becoming increasingly crowded is StableUSD (USDS), a stablecoin by blockchain startup Stably.

The VC-backed firm announced on Thursday, November 1, 2018, that it had launched an early access program, with parties now able to create and redeem the USDS.

The startup has said that the token is pegged on the US dollar 1:1 and its fiat reserves will be held by Prime Trust, a Nevada-based regulated trustee.

Stably aims at “real-time” reserve transparency

Transparency could be the difference maker for USDS, a point notably emphasized by Stably in its blog post. The company has reiterated that it will be open about its escrowed fiat holdings.

The firm says that they recognize the fact that fiat-backed stablecoins require issuers to maintain “a high standard of public transparency” as a way of building trust within the consumer and business community.

As such the firm has signed a partnership that will see it make it possible for its users to confirm whether the amount of USDS in circulation is backed by an equivalent amount of real U.S dollars.

“Users of Stably’s future platform will be able to view our fiat reserve’s balance in real-time via a live feed from Prime Trust’s API.”

Apart from that, Stably is collaborating with Cohen & Co., an accounting firm that will conduct attestations every other week to ensure the fiat reserves match total USDS supply.

Tether (USDT) proves reserves

Controversy over lack of transparency has seen the leading price-stable crypto tether face criticism, with concerns that Tether, the company behind the stablecoin, does not hold an equivalent amount in US dollars.

Tether has, however, maintained that the coin is fully collateralized 1:1, with a letter publicized on Thursday this week appearing to show that indeed the platform has its token backed by actual fiat in reserves.

Deltec Bank and Trust Limited purportedly confirmed that it is holding about $1.8 billion on behalf of Tether Limited, although questions linger as the company has over the last few weeks withdrawn nearly 1 billion of its USDT tokens from circulation.

With its real-time monitoring model, USDS may just have an edge over USDT and the other recent additions like TrueUSD (TUSD), Gemini Dollar (GUSD), Circle-backed USD Coin (USDC), and PAX by Paxos.

‘Proven centralized model’

Stably’s announcement states that any user can generate and redeem USDS coins after completing a verification process that includes KYC checks.

Per the company, prospective users need only transfer their funds to the firm’s trustee. With the transaction initiated, Stably then sends the transaction to its smart contract. The smart contract will then mint new USDS tokens and send them to the user.

The same process will be used when users transfer Bitcoin (BTC), Ether (ETH), or Tether (USDT).

According to the blog post, a regulated third party will convert the transferred cryptocurrency to U.S. dollars. After that, the smart contract will mint an equivalent amount of StableUSD and sent it to the user’s account.

To achieve this, the startup has said that it will employ a “proven centralized model” with the aim of ensuring that they fully back all the tokens in circulation.

At the moment, verified clients have access to the procedure, but plans are underway to unveil a web portal that would greatly simplify the whole process.

Stably’s seed funding round raised $500,000 with contributions from the likes of 500 Startups and Beenext Ventures.

The company’s co-founder Kory Hong said in April that USDS would offer significant competition to USDT and that Tether’s dominance would not last, given that more stablecoins had started “coming onto the scene.”

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