Unitas Foundation, a pioneer in the decentralized finance (DeFi) space, has made an exciting announcement that will revolutionize the way we look at stablecoins. As of 31st July, the Unitas Protocol mainnet is live.
The Dawn of Unitized Stablecoins
In a world-first, the Unitas Protocol introduces unitized stablecoins. This new category of stablecoins operates as ‘Units of Account’ for different emerging market currencies. By doing so, it addresses the issue of dollar shortages in emerging markets by providing businesses and individuals with access to global USD liquidity.
This innovation allows anyone to mint unitized stablecoins using USDT. It effectively ‘unitizes’ a USD stablecoin (such as USDT) into one local currency unit.
The first batch of unitized stablecoins open for minting includes:
Each name follows a unique convention; it is prefixed with the ‘Store of Value’ (e.g., ‘USD’) and suffixed with country codes that represent ‘Units of Account’ of emerging market currencies.
Bridging Global Finance and Digital Asset Ecosystems
Wayne Huang, co-founder and board member of Unitas Foundation couldn’t hide his excitement on this milestone day. He stated that “Today is a significant milestone for Unitas and the global financial and digital asset ecosystems”.
Despite every country having its sovereign currency unit used for domestic transactions and communication, USD stablecoins have become increasingly popular due to their convenience.
Consider an Indian importer who needs to buy USDT with INR cash through peer-to-peer transactions before making payment to their supplier. With the introduction of USD91, this process becomes more efficient by maintaining competitive rates while guaranteeing USDT liquidity over-reserved on-chain for anyone’s audit.
The same solution applies to other countries such as Vietnam (via USD84) and UAE (via USD971). In essence, holding a unitized stablecoin like USD91 equates to holding a USDT but provides added benefits like local currency-denominated transactions in familiar units.
Empowering Emerging Markets
The Unitas Protocol operates exogenously over-reserved stablecoins pegged to emerging market currencies. These new types of stablecoins unleash unmatched potential in these economies by facilitating:
- Foreign investment
- Cross-border payment
- Global market access
- DeFi participation
- Efficient provision of USD liquidity
By doing so, each country can have its unique version of USDT acting as a common denomination for all kinds of transactions.
In conclusion, the live launch of Unitas Protocol mainnet ushers in an era where emerging markets can tap into global liquidity efficiently without grappling with traditional hurdles such as foreign exchange fluctuations or limited access to foreign currencies.
Disclaimer: The information contained in this article and links provided are for general information purposes only and should not constitute any financial or investment advice.