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- Cardano’s Charles Hoskinson says USDM is becoming the most advanced stablecoin ever built after W3i’s CTO explained its ability to fit into the complex payroll structure.
- Unlike USDM, USDC was reported as incapable of meeting the requirements of proper payroll operations due to its public access.
Cardano co-founder Charles Hoskinson has lauded the unique capabilities of new stablecoin entrant USDM in a recent X post. According to him, it is on the verge of becoming the most advanced stablecoin ever built.
More About Cardano’s USDM and Its Unique Capability
Hoskinson’s latest comment follows his earlier bemoaning of the relatively low stablecoin liquidity in Cardano’s Decentralized Finance (DeFi) ecosystem. As detailed in our earlier news coverage, the stablecoin market capitalization to total DeFi Total Value Locked (TVL) ratio was recently around 9.6%, lower than the likes of Ethereum (195%) and Solana (125%).
In another report, Hoskinson was said to have proposed a conversion of 140 million ADA ($100 million at that time) to USDM to fill the existing vacuum and improve liquidity.
Prior to his remark on X and the earlier partnership with the Argentine province of Entre Ríos, which CNF extensively covered, Hoskinson had posted live images of an essential workshop in Buenos Aires, Argentina, hinting that they are making progress on the first private stablecoin.
Responding to this, the CTO at W3i, Andrew Westberg, highlighted how stablecoin is a small but important piece of discussion in Argentina.
In a detailed post, Westberg explained the complex nature of payroll structure, where team members access certain transactional information based on their specific roles and organizational hierarchy.
Unlike USDM, Westberg argued that USDC is not capable of this requirement, as everything it does could be publicly accessed. According to him, this next generational stablecoin, however, could truly replace the Traditional Finance (TradFi) system for the first time.
A person is paying the government water bill. Private user, but public data is anonymous. Remittance is private and the person has proven that the receiver is not in a sanctioned country. Nothing else is disclosed. Tradfi is loaded with privacy use cases that can’t or won’t use the current iteration of public stablecoins.
Earlier, Hoskinson proposed the development of a stablecoin that would prioritize transactional privacy by making use of a “selective disclosure and season freeze regime”. As discussed in our previous post, the network’s Midnight was highlighted as one of the main components of this initiative.
Cardano’s Moneta USDM is widely known for its advanced privacy architecture designed for enterprise-level compliance needs. Recently, it integrated with Lace Wallet to improve visibility and ensure access to Cardano users.
Currently, USDM has a market capitalization of $152 million with about 38k wallet holders according to CoinMarketCap data. Its deployment is also concentrated on Ethereum, Polygon, and Arbitrum. Comparatively, Circle’s USDC has a market cap of $63.9 billion. Our research shows that USDC is now issued across different networks, including Ethereum, Solana, Base, Hyperliquid, etc.
Generally, the stablecoin market has been predicted to be widely adopted for payment, remittance, and tokenized assets by 2030. As indicated in our recent news story, Citi believes that this market could reach a market cap of $3.7 trillion in five years.
