Cardano has launched its native USDM stablecoin to bolster decentralized finance (DeFi) liquidity, targeting a significant deficit where stablecoins currently represent only 9.65% of the network’s total value locked (TVL). This adoption rate significantly trails competing blockchains like Ethereum and Solana.
The USDM stablecoin incorporates programmable access controls and multi-role visibility layers, providing tailored privacy options while maintaining regulatory compliance. These technical innovations aim to attract capital into Cardano’s DeFi ecosystem by offering enhanced security and permission structures that exceed standard stablecoin capabilities.
Cardano founder Charles Hoskinson emphasized USDM’s pivotal role in advancing the blockchain’s DeFi functionality during a workshop in Buenos Aires. Lead developer Andrew Westberg detailed the stablecoin’s complex architecture, highlighting privacy and compliance as foundational elements designed to position USDM as a next-generation digital currency solution for institutional and retail use cases.
The deployment marks a strategic bid to close Cardano’s liquidity gap and expand utility across global remittance and cross-border payment applications, leveraging the platform’s scalable infrastructure.