MegaETH, an Ethereum scaling community designed for transactions that course of so shortly 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 intently into functions and protocols constructed on prime of the community and goals to assist preserve 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 area for functions,” 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 at first 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 united statesdollar. They function a major 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 acquired a regulatory enhance earlier this 12 months 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 situation a proprietary stablecoin with a service supplier as an alternative of solely counting on the prevailing stablecoin choices, at present dominated by Circle’s USDC and Tether’s USDT.
Fashionable crypto pockets MetaMask just lately introduced the launch of its personal stablecoin with infrastructure suppliers M0 and Stripe’s Bridge, whereas Hyperliquid, a layer-1 community identified for its fashionable on-chain perpetual swaps alternate, is holding an audition for a stablecoin issuer associate 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 situation 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 fee.
Learn extra: Hyperliquid Faces Neighborhood Pushback In opposition to Stripe-Linked USDH Proposal
