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The Unitas Foundation has made a groundbreaking announcement on July 31, 2023. The Unitas Protocol mainnet is now live, bringing a new era of unitized stablecoins. This revolutionary protocol allows anyone to mint unitized stablecoins using USDT, making it the first DeFi protocol to offer this unique category of stablecoins.
Bridging the Gap between USD Stablecoin Liquidity and Emerging Market Currencies
Unitized stablecoins serve as Units of Account for various emerging market currencies. This innovative solution addresses the dollar shortages in emerging markets by providing businesses and individuals with access to global USD liquidity for safe and cost-effective cross-border transactions.
“Today is a significant milestone for Unitas and the global financial and digital asset ecosystems,” said Wayne Huang, co-founder and board member of Unitas Foundation. “Unitas Protocol unlocks stablecoin real-world business and individual applications.”
The initial unitized stablecoins available for minting include:
Each unitized stablecoin reflects the value of one unit of an emerging market currency (e.g., INR) denominated in a USD stablecoin (e.g., USDT).
The Power of Local Currency-Denominated Transactions
Despite the convenience offered by USD stablecoins, each country has its sovereign currency that primarily denominates domestic quotations, transactions, and communication. For instance, an Indian importer currently must buy USDT with INR cash via a peer-to-peer transaction to pay their supplier.
| Unitized Stablecoin | Corresponding Country | Purpose |
|---|---|---|
| USD91 | India | Ensures competitive rates and guarantees USDT liquidity |
| USD84 | Vietnam | Provides local businesses easy access to global markets |
| USD971 | UAE | Facilitates smooth cross-border transactions |
Through the Unitas Protocol, these challenges are addressed by providing liquidity in local currencies while ensuring competitive rates. In essence, while holding a unitized stablecoin is equivalent to holding a USD stablecoin, these new additions enable transactions denominated in local currencies that are more straightforwardly quoted and communicated in familiar Units of Account.
Unleashing Emerging Market Potentials with Over-reserved Stablecoins
The Unitas Protocol operates exogenously over-reserved stablecoins pegged to emerging market currencies. These over-reserved pegs facilitate foreign investment, cross-border payment, global market access, DeFi participation, efficient USD liquidity – all contributing towards unleashing the untapped potential within these markets.
The launch of this protocol signifies an essential step forward in financial inclusivity around the world. By facilitating more accessible cross-border transactions through their unique approach to value translation between USD and other currencies guarantees that its stablecoin can unconditionally convert back to a USD stablecoin.
With unitized stablecoins introduced by Unitas Protocol’s mainnet launch on Ethereum network, each country can now experience its version of USDT – acting as a common denomination for all types of transactions.
The information provided here should not constitute any financial or investment advice. Always conduct your research or consult with a professional before making any financial decisions.
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