Cardano stablecoin rises at launch

Something went wrong: Cardano gets its first stablecoin backed by FIAT. However, it was disconnected at launch.

Cardano got a new stablecoin this week, USDM. And with it: a surprise. At launch, it rose 400 percent to about five US dollars. Since then, it has consolidated at the target of one US dollar.

USDM currently targets institutional investors in 17 states in the US. It is backed by fiat, similar to USDC or Tether. Starting next month, it will also be available to retail investors.

The team behind the project clarified that this is an early phase of the launch and that this problem will not occur in the future. USDM is the first stablecoin on Cardano supported by fiat. There are two others: iUSD, a synthetic stablecoin, and Djed, an algorithmic stablecoin.