The first stablecoin on the VeChain network that is native and USD-backed is called VeUSD. Investors, traders, and other participants in the cryptocurrency market can benefit from stablecoins by avoiding the market's volatility. You can learn all about VeUSD right here.
What is VeUSD?
VeUSD is a stablecoin that is pegged to the US dollar and completely redeemable for USD at a 1:1 ratio. VeUSD's USD collateral is kept in a trust account managed by Prime Trust, a provider of financial infrastructure for fintech apps.
VeUSD will always be pegged to the US dollar
A specific type of cryptocurrency called a stablecoin is made to maintain a steady value over time. In most cases, a stablecoin's value is correlated to a certain real currency. A common example of this is the dollar. This means that one cryptocurrency unit is often equivalent to one unit of fiat money.
Due to the requirement that users deposit collateral in order to mint new VeUSD stablecoins, each VeUSD will always be completely backed by fiat currency. At any point, these reserves are redeemable at a 1:1 ratio.
How does VeUSD work?
Users and businesses can produce and burn USD-backed stablecoins, according to the VeChain team. VeChain is now accessible to DeFi and web3. VeChain is a distributed business platform that uses blockchain technology. With the help of blockchain technology, it is especially designed for small and large businesses to allow them to track all necessary processes.
Users can mint and redeem VeUSD stablecoin tokens using Stably. By using our stablecoin platform, Stably Prime, users can buy and sell VeUSD for cash.
You must sign up for a Stably account before you can enable trading on your account by verifying your identity.
The key steps for starting with Stably are as follows:
1. Sign up for a Stably account.
2. Verify your identity.
3. Send funds to stably (USD Fedwire transfer and ACH, by sending ERC-20 USDC or USDT, using USDC on Stellar).
4. Cryptocurrencies like bitcoin or ethereum can also be deposited.
5. Mint and withdraw VeUSD to the VeChainThor wallet.
