USDM Stablecoin to Launch Retail Offering Soon

USDM Stablecoin plans a public retail rollout of its fiat-backed stablecoin “Mehan Finance” as early as next month.

The company behind Cardano’s most recent stablecoin, USDM, plans a public “retail rollout” of Mehen Finance’s fiat-backed stablecoin as early as the following month.

USDM Stablecoin was officially released on Cardano on March 17; however, at the moment, it is exclusively accessible to users who are affiliated with institutions.

independently-reported oracle value governs the amount of USDM token that can be minted, so excess minting is not possible.”

USDM Stablecoin Plans Retail Offering

Matthew Plomin, Founding Partner of Mehen Finance, said that they expect the retail rollout in April. According to Plomin, “We are in limited launch, calling it ‘Live main-net ecosystem early-rollout’ internally.”

He also mentioned that institutions in suitable countries can join the platform and begin minting the stablecoin. Plomin noted that the USDM architecture is similar to other fiat-backed stablecoins, but it differentiates itself by incorporating a crucial feature that prevents excessive minting.

Furthermore, the reserve of USDM Stablecoin is reported directly to Charli3, a decentralized oracle explicitly created for the Cardano network. Furthermore, the token’s smart contract incorporates the data from Charli3 Oracle.

According to Plomin, this guarantees transparent real-time transfers. Mehen also indicated in July last year that USDM Stablecoin will not be freezable, in contrast to Circle’s USD Coin (USDC) and Tether (USDT).

Based on this attribute, USDM is considered a superior stablecoin, according to Caleb Montiel, the founder of Cardano Curation, a content platform for the cryptocurrency.

However, the inability to freeze USDM on-chain could have a negative consequence, as stated by Vanessa Harris, a crypto analyst. Harris warns that regulators could instead block USDM bank accounts, which could affect the peg of USDM.

Mehen’s headquarters are located in New York, a location in which the state’s financial services authority has a track record of conducting investigations and taking legal action against some of the most prominent participants in the industry.

Plomin claims that the government exclusively stores the USDM reserve in mutual funds at Fidelity and Western Asset Management. Plomin stressed that the government is not using these funds in the same way as banks.

Currently, early institutional customers are contributing dollars from the United States through wire transfers and getting USDM at a ratio of one dollar to one dollar.

Later this year, Mehen will look for licenses to operate as a money transmitter and virtual asset service provider in Europe and the United Kingdom. 17 states in the United States have already granted Mehen permission for licensing, with more expected soon.

“Securities offered under [regulated crowdfunding] are available to people around the world, and we are committed to tokenizing our Series A shares on Cardano.”

During this time, Plomin disclosed that Mehen will shortly become the recipient of its first investment through a crowdfunded equity raise rather than a token sale transaction.