Hassan Maishera
Coti will host its stablecoin on Cardano
The Coti platform has revealed that it would launch its stablecoin on the Cardano blockchain. This latest development is a huge win for the Cardano blockchain as it seeks to compete with some of the leading networks like Ethereum and Solana.
Charles Hoskinson, the founder and CEO of Solana and Shahaf Bar-Geffen, announced this latest development during the Cardano Summit stage in Laramie, Wyoming, on Sunday. In a blog post published yesterday on the Cardano IOHK site, the team said, “The COTI platform would be the official issuer of Djed, a new stablecoin for Cardano. Djed is based on an algorithmic design that uses smart contracts to ensure price stability. Smart contract programming is also used to ensure that the stablecoin will work effectively for decentralized finance (DeFi) transactions.”
According to the blog post, Djed operates by maintaining a reserve of base coins. It also mints and burns various other stable assets and reserve coins. The team added that Djed is designed to be used for paying transaction fees on the Cardano network. A key benefit of this is to make transaction costs more predictable, so avoiding volatile and exorbitant gas fees for users.
Stablecoins are some of the fastest-growing within the cryptocurrency space. Over the past few years, stablecoins such as Tether (USDT), USDC and others have gained massive adoption. As such, the deployment of the stablecoin on the Cardano blockchain is a huge deal for the ecosystem.
Shahaf Bar-Geffen, chief executive of COTI Group, said, “The stablecoin ecosystem has matured tremendously over the past few years. Blockchain participants are using stablecoins to engage in everyday transactions because they allow monetary value to be exchanged in a seamless manner, regardless of the sender and recipient’s location. I believe that adding the Djed stablecoin to the Cardano blockchain will significantly improve how transactions are settled on the platform.”
Cardano is currently the third-largest cryptocurrency by market cap, behind Ether and Bitcoin.
