MegaETH, an Ethereum scaling community designed for transactions that course of so rapidly it calls itself a “real-time” blockchain, stated on Monday it’s launching a local stablecoin with fast-growing DeFi protocol Ethena .
The token, dubbed USDm, will likely be embedded carefully into purposes and protocols constructed on high of the community and goals to assist maintain transaction prices low on the chain by redirecting revenues from the reserve property to subsidize sequencer prices, in keeping with a weblog publish.
“USDm means decrease charges for customers and a extra expressive design house for purposes,” MegaETH co-founder Shuyao Kong stated within the weblog publish. “We’re excited to work with Ethena to allow a win-win situation for all stakeholders in our ecosystem.”
The token will likely be backed to start with by Ethena’s USDtb, a yield-generating token backed by BlackRock’s tokenized cash market fund BUIDL. Later, different and future Ethena-issued tokens could also be added such USDe, MegaETH stated in a weblog publish.
Ethena’s governance token, ENA (ENA), gained 7% over the previous 24 hours, outperforming the broader crypto market.
Stablecoins are a fast-growing, $270 billion group of cryptocurrencies, predominantly with costs tied to the usdollar. They function a main liquidity and buying and selling pairs on crypto venues, and are additionally more and more used for cross-border funds promising sooner, cheaper transactions on blockchain rails in comparison with conventional banking channels. They obtained a regulatory increase earlier this yr within the U.S. when President Donald Trump signed the GENIUS Act, the primary main piece of crypto laws within the nation, into legislation.
MegaETH’s stablecoin is the newest instance of crypto ecosystems making steps to challenge a proprietary stablecoin with a service supplier as an alternative of solely counting on the present stablecoin choices, presently dominated by Circle’s USDC and Tether’s USDT.
Common crypto pockets MetaMask not too long ago introduced the launch of its personal stablecoin with infrastructure suppliers M0 and Stripe’s Bridge, whereas Hyperliquid, a layer-1 community identified for its well-liked on-chain perpetual swaps alternate, is holding an audition for a stablecoin issuer accomplice for its personal token.
MegaETH’s token plan additionally highlights Ethena venturing into the stablecoin-as-a-service enterprise, serving to different crypto ecosystems to challenge their very own stablecoins. The protocol is behind the $13 billion digital greenback USDe, which supplier yield by holding spot crypto like bitcoin and ether whereas promoting (shorting) an equal quantity of derivatives to reap the funding charge.
Learn extra: Hyperliquid Faces Neighborhood Pushback In opposition to Stripe-Linked USDH Proposal
