VeChain announced the upcoming launch of VeUSD, the first native stablecoin of enterprise-grade VeChainThor blockchain.
The VeChainThor blockchain is an open-source platform, maintained by the Singapore-based VeChain Foundation.
According to the official announcement, stablecoin will come out after several months of development. The exact launch date is not specified, although the report states VeUSD will “soon go live on mainnet.”
VeUSD stablecoin will be fully backed by physical reserves of fiat money at a 1:1 ratio and will be audited by Nevada-chartered trust company Prime Trust. It will be fully available to redeem at any time, says VeChain team.
With the launch of VeUSD, VeChain is expected to open up for more new real-world cases, Web3, and decentralized finance (DeFi) possibilities, including functionalities similar to Ethereum.
“There are endless application scenarios for a stable coin,” says the announcement. It also mentions quicker and easier cross-border payments and the ability to reach unbanked areas and users.
In addition to the VeUSD release, VeChain is launching a hackathon to boost the development of tools, functions, as well as new types of protocols and projects on its VeChainThor blockchain.
The hackathon is expected to start in the upcoming weeks and reward the participants with VeUSD stablecoins.
The price of VeChain’s main token, VET, surged over 9% following the announcement. The VET token has been struggling to grow since the beginning of November when it touched the $0.017 price point.
VeChain currently is the 31st biggest cryptocurrency by market capitalization.
On the Flipside
- VeChain started as a subsidiary of BitSE, which is one of China’s largest blockchain companies. Its ties with the Chinese government are often seen as one of the largest obstacles for VeChain to get broader adoption in Western markets.