A new stablecoin named USDV was introduced with the goal of bringing stability and transparency.
An announcement made available states that USDV is backed by short-term government bills that have been turned into digital tokens via blockchain technology and is correlated with the value of the US dollar.
Matrixport, a Bitcoin financial services provider, is the creator of the tokens. Digital currencies known as stablecoins are created to have a consistent value and to hold onto it through intricate tokenomics or by being linked to an object like the US dollar.
Although their popularity has recently increased, regulators worried about transparency and possible runs have also increased their surveillance of them.
In an apparent effort to allay investors’ worries, USDV purports to enable real-time verification of the Treasuries supporting the coin. According to the charity Verified USD Foundation, which introduced the coin, third-party security audits were performed on the smart contracts that control USDV.
According to the foundation, USDV will support the growth of a group of “verified minters” who will be rewarded for their contributions to the ecosystem.
The algorithm that it utilizes to distribute prizes is called ColorTrace. Among the first twenty-six backers of USDV are prominent participants in the market, such as the decentralized finance platform Curve Finance and cryptocurrency exchange Bitget.
Stablecoins have experienced tremendous growth over the previous year, surpassing a $126 billion market valuation, Tether is still by far the biggest. Ethereum (ETH), Binance Smart Chain (BNB), Avalanche (AVAX), Arbitrum (ARB), and Optimism (OP) are the five blockchains on which USDV first launches.
The foundation intends to use LayerZero’s omnichain fungible token technology to grow to more than 40 networks. The Treasury tokens are available only to accredited investors due to securities regulations. Although the resulting USDV stablecoin can be used by anyone.
