Stably is a company that will manage the issuance of the USDS stablecoin.
USDS already exists on networks like Ethereum, Arbitrum, and BNB Chain.
Stably, a provider of Stablecoin-as-a-Service (SCaaS) services and infrastructure for fiat money transactions in Web3 projects, launched a stablecoin on the Bitcoin network, backed by US dollars. This stablecoin, called Stably USD (USDS), is a BRC-20 token.
In it advertisement, it is described that “USDS is backed and redeemable 1:1 for USD managed by our regulated custodian.” In addition, it is detailed that the support of the stablecoin is subjected to “monthly certifications carried out by an external certifier.”
Soon, Stably will communicate an alliance with Unisat Wallet, one of the Bitcoin wallets most related to the Ordinals protocol and the creation of tokens in the Bitcoin network, as reported in CriptoNoticias.
“USDS can be issued and redeemed with Fedwire, SWIFT, USDC, and USDT by KYC-verified users in more than 200 countries today,” Stably detailed about the stablecoin, which already exists on networks such as Ethereum, BNB Chain, and Arbitrum, among others. In addition, the company anticipated that it will launch these functions on its Stably Ramp platform by the third quarter of 2023.
This stablecoin is possible thanks to the BRC-20 standard, which in turn arose from the Bitcoin Ordinals protocol. As explained in this newspaper, the deployment, issuance and transfer of these tokens is done through a JSON data entry. This is a light, plain text format that is easy to read and write, which partly explains the success of this type of token, which is easy to program.
This is also possible in the Ordinals protocol, which also supports image, video, audio and application files. With these entries, data is recorded in a section of Bitcoin transactions known as witness or witness, where the signatures of the transaction are recorded, so that they remain forever on the network.
Although Stably claims to have launched “the first stablecoin in Bitcoin”, it should be noted that There are already others in second layers of the network, such as Rootstock or Liquid.
Criticism of USDS, the new stablecoin in Bitcoin
Stably’s ad generated different responses and expressions on social media. One of the most controversial aspects was the KYC (Know Your Customer) requirement.. This implies that users must validate their identity in order to use a product and, of course, this is far from what happens naturally in Bitcoin.
On the other hand, The centralization of the project and the inconvenience of deploying it in Bitcoin were also noted.. “Using Bitcoin layer 1 for this seems like nonsense at first glance. Expensive and slow wrote Manuel Ferrari, a member of the Money on Chain team.
The Lunaticoin podcaster seconded it In his vision: “BRC20 tokens are very inefficient in terms of fees (commissions) and imply high transaction costs.”