TrueUSD is set to become the first US dollar-backed stablecoin to launch on the Avalanche blockchain.
The hope is that the integration, planned for the first quarter of 2021, will lead to improved use cases for stablecoins in payments as well as in DeFi applications, upping the speed and lowering the cost of transactions.
“US dollar liquidity is vital to thriving DeFi ecosystems, and we’re excited to bring one of the most trusted and widely-used stablecoins onto Avalanche,” says John Wu, president of Ava Labs.
TrueUSD, one of the five largest fiat-backed stablecoins by market capitalisation, is one of a number of stablecoins developed by TrustToken.
The firm also offers cryptocurrencies backed by pound sterling, the Hong Kong dollar, the Canadian dollar and the Australian dollar. Collectively, these currencies trade on over 100 exchanges and OTC desks.
Avalanche is an open-source platform specialising in hosting DeFi applications and enterprise blockchain solutions, and which stresses its scalability and interoperability.
In launching TrueUSD on Avalanche, TrustToken said it hoped to attract users in needs of low-latency for activities such as high-frequency trading.
Commenting on the launch of further stablecoins on Avalanche, Ava Labs president John Wu said the firm is “in final discussions with multiple other top-five USD stablecoin by market cap to launch natively on Avalanche”.
“We’ll also be onboarding additional stablecoins representing other fiat currencies, and algorithmic stablecoins to ensure DeFi users on Avalanche have flexibility and liquidity across all applications,” he told The Block.