Cardano currently lacks a stablecoin backed by traditional currency and relies on algorithmic stablecoins like DJED to support its DeFi ecosystem. The solution to this may have arrived in the form of USDM. On October 12th, 2023, Mehen CEO Steven Fisher and CFO Matthew Plomin offered their insights into USDM, which is being touted as the premier stablecoin for Cardano. USDM was inspired by the acknowledgement of a significant flaw in DJED, the initial native stablecoin designed for Cardano. Determined to follow a regulatory-compliant path, Plomin and the Mehen team chose a route akin to the meticulous legal framework employed by USDC, and they have been diligently pursuing it for an extended period. Going forward, the protocol will collaborate with a prominent lawyer specializing in money transmitter laws to navigate the intricate web of US regulations. He disclosed that the protocol is in the process of securing regulatory approval by multiple states and is adhering to all the relevant anti-money laundering (AML) policies. Up to this point, the company has reached out to regulatory authorities in every state except New York, primarily due to the high fees and stringent rules in that state. Plomin also added that their aspirations extend beyond the United States, as they are planning to engage with authorities in Puerto Rico, the Virgin Islands, and other jurisdictions to facilitate a launch. When asked about their progress, Fisher revealed that USDM has received the green light by 12 states, paving the way for a pre-production launch next month and a full mainnet launch by December 2023.
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