The emergence of a new dollar-backed stablecoin, Stably USD, specifically designed for the rapidly growing on-chain Bitcoin economy, raises questions about the future of digital asset trading. Developed and issued by the crypto startup Stably, this innovative token could potentially transform how traders transact on the Bitcoin platform.
In recent months, the Bitcoin ordinals scene has evolved considerably since its initial concept of inscribing NFTs on Bitcoin’s tiniest denomination, the satoshi. With the advent of the ordinals protocol, creating a diverse range of tokens, including Stably USD, has become possible. As a “BRC-20” token, Stably USD aims to simplify trading in ordinals by offering a more efficient and cost-effective alternative to using fiat currency or even Bitcoin itself.
However, some skepticism still remains about whether this stablecoin will indeed make a significant impact on the market. Currently, traders in the ordinals market have two main options: either using stable fiat currency with additional fees or opting for the more volatile yet easily accessible Bitcoin. According to Stably, their stablecoin resolves both issues by maintaining a stable value and allowing easy on-chain access.
The company documents reveal that Prime Trust holds the fiat backing for Stably USD. Users wishing to redeem their stablecoins for the underlying dollar value will be required to undergo a KYC (Know Your Customer) and AML (Anti-Money Laundering) process. This added layer of security may be appealing to some traders, but could also potentially deter others.
For Stably USD to succeed long-term, it needs to overcome the shortcomings of its other stablecoin products. For instance, Stably’s Ethereum-linked stablecoin, StableUSD (USDS), has a meager market cap of $264,000 and just 752 holders, making it practically irrelevant in comparison to well-established market leaders such as Tether and USDC.
Nonetheless, Stably seems optimistic about its newest ordinals stablecoin, creating it with an ambitious maximum supply of 69,420,000,000,000. The success or failure of Stably USD in penetrating the ordinals market remains to be seen. However, one thing is certain: the rapidly evolving world of blockchain technology will continue to bring about new challenges and opportunities for the crypto community and the global financial system as a whole. As enthusiasts and skeptics alike debate the potential of these emerging digital assets, it’s clear that the exploration and development of alternative financial solutions are only just beginning.
Source: Coindesk
