NBX has entered into an agreement to be the European issuer of a US dollar stablecoin in collaboration with Mehen Finance LLC. Mehen Finance LLC owns the rights to the USDM stablecoin and conducts issuance and redemption in the USA, while NBX will do the same for the European part of the business.
When the regulation comes into effect, NBX will issue the stablecoin under European e-money regulations and in compliance with MICA.
Through this agreement, NBX will become the co-issuer of USDM in the EU, allowing the minting of new USDM and redemption of the USD fiat equivalent of the USDM by burning the USDM token for the return of USD. This agreement leverages the e-money license NBX holds and aligns with Mehen’s strategy of being a regulated and licensed stablecoin with global coverage, ensuring that USDM remains the standard for regulatory compliance and transparency.
USDM is a Cardano Native Token (CNT) fiat-backed stablecoin that is fully reserved, transparent, and audited. USDM is the first to market as a fiat-backed Cardano-native stablecoin, with daily 3rd party reserves verification through oracles to provide transparency. It currently serves nearly 50% of the U.S. population with a roadmap to regulatory-compliant global coverage within 12 months. It also supports community integration with over 25 Cardano projects integrating the USDM token. Mehen aims for USDM to serve as a base asset for decentralized finance (DeFI) protocols and enable instant on-chain payments.
The Cardano blockchain is one of the most decentralized blockchains, as shown recently through the Edinburgh Decentralized Index (EDI) alpha release. It is currently implementing governance improvements with the Cardano Improvement Proposal (CIP) 1694 in the Chang hard fork. The total market cap of the Cardano Native Tokens is close to 2 billion USD. There is a growing market and need for stablecoins to facilitate decentralized applications (dApps) functionality like DeFI. Norwegian Block Exchange is excited to partner with Mehen as a co-issuer of the stablecoin USDM to help meet these needs.
Best regards.
NBX.
