A new dollar-backed stablecoin has launched on the Cardano (ADA) mainnet.

The financial firm Mehen launched the USDM stablecoin over the weekend, noting that institutional users would spend a day or two onboarding the asset.

The issuer says the stablecoin will “slowly be arriving on-chain” this week.

Mehen says each USDM is backed 1:1 by a US dollar in a US-based bank.

“USDM represents a paradigm shift in the world of stablecoins, bridging the gap between traditional fiat currencies and the decentralized realm of blockchain. Backed by verifiable reserves and leveraging the Cardano network’s robust infrastructure, USDM sets a new standard for stability, transparency, and efficiency in the digital asset space…

As the Cardano ecosystem continues to evolve, initiatives like USDM underscore the platform’s commitment to innovation and empowerment on a global scale.”

ADA is trading at $0.632 at time of writing and is down 4.38% in the past 24 hours.

The ninth-ranked crypto asset by market cap hasn’t enjoyed the same level of gains this year as numerous other large-cap cryptos.

The Ethereum (ETH) competitor is only up around 1.3% since the start of 2024 and remains nearly 80% down from its all-time high of $3.09, which it hit in September 2021, according to CoinGecko.

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