The Unitas Foundation has made a groundbreaking announcement that the Unitas Protocol mainnet is now live. This marks a significant milestone in the global financial and digital asset ecosystems. The protocol introduces an innovative approach to stablecoins, promising to alleviate dollar shortages in emerging markets while offering a safe and affordable medium for cross-border transactions.
The Emergence of Unitized Stablecoins
Unitas Protocol is the pioneer of unitized stablecoins, a new breed within the stablecoin space. These function as Units of Account for various emerging market currencies. In essence, this protocol allows anyone to mint unitized stablecoins with USDT, effectively “unitizing” a USD stablecoin (like USDT) into one local currency unit.
The first batch of unitized stablecoins open for minting include USD91 (INR-pegged), USD971 (AED-pegged), USD84 (VND-pegged), and USD1 (USD-pegged). The naming convention adopted by Unitas prefixes its stablecoin names with a Store of Value — “USD” in this case — and suffixes them with country codes that indicate Units of Account of emerging market currencies.
Unlocking New Opportunities
Wayne Huang, co-founder and board member of Unitas Foundation, expressed his enthusiasm about this achievement:
“Today is a significant milestone for Unitas and the global financial and digital asset ecosystems,” said Huang. “Unitas Protocol unlocks real-world business applications for both businesses and individuals.”
Despite the convenience offered by USD stablecoins, every country has its sovereign currency unit which forms the primary denomination in domestic transactions, quotations, and communication. This is where Unitas steps in.
For instance, an Indian importer would typically need to buy USDT with INR cash via a peer-to-peer transaction before paying their supplier. With the introduction of USD91, this process becomes more seamless as it guarantees competitive rates along with liquidity over-reserved on-chain for anyone to audit.
Bridging Global USD Liquidity
In essence, holding a unitized stablecoin like USD91 equates to holding a USD stablecoin like USDT. However, these new coins enable local currency-denominated transactions based on stablecoins which simplify quotation and communication in users’ familiar Units of Account.
In simple terms, Unitas Protocol acts as a value translator between USD and other currencies while guaranteeing that its stablecoin can unconditionally convert back into a USD stablecoin.
With unitized stablecoins at hand, each country can have its own best version of USDT acting as common denomination for all kinds of transactions.
Unleashing Emerging Market Potentials
By operating over-reserved exogenous stablecoins pegged to emerging market currencies, Unitas Protocol promises to unlock potentials within these markets. It enables efficient foreign investment facilitation, cross-border payment solutions, global market access provision along with DeFi participation capabilities.
To learn more about how you can benefit from this breakthrough innovation by Unitas Foundation or get involved in their mission to democratize access to global liquidity markets; visit their official website, Wiki, Telegram, Twitter, blog or shoot them an email at [email protected].
Please remember that while investing always comes with risks – it’s crucial that you do your own research or consult professionals before making any financial decisions.