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Usual secures $10M funding, revolutionizing crypto finance with a decentralized stablecoin model, impacting SMEs and cross-border payments.
Usual just snagged a $10 million Series A funding round, and it’s making waves in the crypto finance world. This isn't just any stablecoin; it's a decentralized one, and it's captured a lot of attention. This funding shows Usual is a serious player, sitting comfortably alongside some of the top stablecoins out there. So, let’s delve deeper into what makes Usual tick and how it stacks up against traditional payment methods, especially for SMEs.
Usual is all about decentralized finance. They’re offering a fiat-backed stablecoin, which aims to keep things stable in the often turbulent crypto market. The governance is in the hands of USUAL token holders, which means decisions are made by the community. It’s built on blockchain tech and smart contracts, giving it a leg up in transparency and security over traditional systems.
When it comes to numbers, Usual's TVL has shot up to over $1.4 billion, which shows that people are starting to trust it. It’s now sitting among the top 5 stablecoins, even surpassing some big names like PayPal USD. And here’s the kicker: it’s the first fiat-backed stablecoin to show real hypergrowth since Circle.
Decentralized stablecoins allow for 24/7 digital payments that are nearly instantaneous. Traditional methods like PayPal or wire transfers? They can take 3-5 business days.
Usual’s decentralized stablecoin cuts out the middleman, which means much lower fees. On the other hand, traditional payment solutions are known for their higher processing and conversion fees.
Blockchain encryption makes Usual’s stablecoin more secure, and its decentralized nature adds a layer of transparency. Traditional methods aren’t bad, but they’re often more vulnerable to fraud and chargebacks, and they operate in a less transparent manner.
With Usual, cross-border payments are a breeze. You won't have to deal with currency conversions or hidden fees, which is often a headache with traditional solutions.
Fiat-backed stablecoins like Usual are crucial for connecting traditional finance with the crypto world. They’re pegged 1:1 to fiat currencies like the US Dollar, so you get the stability of regular money with the efficiency of blockchain. This is a big plus for SMEs doing international business.
Usual’s stablecoin solves a lot of issues traditional banking has. Faster settlements and lower fees are just the start. For SMEs, this means your transactions can settle in minutes, not days, saving you time and money.
Usual is pushing the envelope by giving 90% of its token allocation to the community. It’s already live on Binance’s spot market and has successfully completed a community airdrop. Their goal? To be one of the top 5 stablecoin projects.
Market fluctuations can still hit stablecoins hard. A sudden surge in redemption requests could lead to a run on the stablecoin, especially if it’s not fully backed by liquid assets.
Cyber-attacks and fraud are very real threats in the crypto space, and the complexity of the market can make things worse. It’s essential to have robust security and compliance measures to keep these risks at bay.
Stablecoins are also at the mercy of ever-changing regulations. Not complying, or regulations changing, can destabilize a stablecoin. Just look at Ripple's RLUSD stablecoin; it’s contingent on approval from New York’s Department of Financial Services.
A well-planned community-first approach can help keep the stablecoin steady, but having a solid backing of high-quality liquid assets is critical. Coins like USDT and TrueUSD are fully collateralized and offer more stability than algorithmic ones.
Even with community support, stablecoins can be rocked by market turbulence. Community backing can help a bit, but there should be solid mechanisms in place to maintain the peg.
Usual’s $10M funding round is a big deal in the crypto finance scene, showcasing a new way to mix real-world assets with DeFi. With its stable and fast payment solutions, lower costs, and a promise of regulatory compliance, Usual is set to change how SMEs handle international transactions. As the regulatory landscape clears and global adoption rises, Usual and other fiat-backed stablecoins could play a pivotal role in cross-border commerce and finance, making it easier to embrace the digital finance future.
