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The digital asset ecosystem is continually evolving, and the latest novelty is the Unitas Protocol mainnet, which went live on July 31, 2023. This groundbreaking protocol introduces the concept of unitized stablecoins, a new category of stablecoins that serve as Units of Account for various emerging market currencies.
Bridging the Dollar Gap with Unitized Stablecoins
Emerging markets often grapple with dollar shortages. To address this issue, Unitas Protocol provides businesses and individuals with access to global USD liquidity for secure and cost-effective cross-border transactions. The unique feature of this protocol is that it enables anyone to mint unitized stablecoins using USDT.
Unitas Protocol essentially “unitizes” a USD stablecoin (like USDT) into one local currency unit. The initial unitized stablecoins available for minting include USD91 (INR-pegged), USD971 (AED-pegged), USD84 (VND-pegged), and USD1 (USD-pegged).
Unitas employs a straightforward naming convention for its stablecoin offerings: it prefixes the name with the Store of Value (e.g., “USD”) and appends it with country codes (e.g., “91” for INR) denoting Units of Account for emerging market currencies.
The Power of One: Value Translation in Action
A unitized stablecoin mirrors the value of one unit of an emerging market currency (like INR) denominated in some USD stablecoin (like USDT). This approach significantly simplifies cross-border transactions while retaining the convenience offered by traditional USD stablecoins.
Take an Indian importer as an example. Currently, they would need to purchase USDT with INR cash through a peer-to-peer transaction before paying their supplier in USDT. With Unitas’ innovative solution, this process becomes much simpler and more efficient.
The USD91 unitized stablecoin maintains competitive rates while offering guaranteed liquidity for anyone to audit, effectively streamlining cross-border transactions. This approach extends to other countries such as Vietnam via USD84 and UAE via USD971.
While holding a unitized stablecoin like USD91 is equivalent to holding a traditional USD stablecoin like USDT, these new coins enable local currency-denominated transactions that are easier to understand and execute due to their familiar Units of Account.
Unlocking Global Potential
Unitas Protocol operates over-reserved exogenous stablecoins pegged to emerging market currencies. These coins stimulate economic growth in these markets by facilitating foreign investment, cross-border payments, global market access, DeFi participation, efficient access to USD liquidity, among other benefits.
As we usher in this new era in digital asset ecosystems with Unitas Protocol’s launch on Ethereum mainnet today, we are on track towards creating a world where each country can have its own best version of USDT – acting as a common denomination for all sorts of transactions.
Please note: The information provided here is for general informational purposes only and should not be construed as financial or investment advice. Always conduct your own research or consult with a professional before making any financial decisions.
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