Bitcoin is getting a stablecoin backed by the dollar for its economy

Bitcoin’s on-chain economy is growing rapidly and now has its own dollar-backed stablecoin.

The new Stably USD token is aiming to become the go-to currency for traders who are conducting transactions in the cryptocurrency market, according to Stably, the company that issued the token. The startup claims that its token can make trading more efficient and cheaper than paying with fiat or even bitcoin.

The ordinals scene of bitcoin has come a long way since January and has now become a gateway for creating new assets, including Stably USD. This latest token could make trading in all ordinals faster and easier, however, it will depend on whether it catches on. Currently, ordinals traders pay in two ways: either by on-ramping stable fiat currency for a fee or with volatile bitcoin. Stably says its stablecoin will solve both issues by retaining a stable value and remaining accessible on-chain.

Stably USD’s fiat backing is held with Prime Trust and redeemers will need to go through a KYC and AML process to swap their stablecoins for the underlying dollar value.

Stably’s first bitcoin-linked stablecoin will need to perform better than its other stablecoin products if it wants to succeed in the long term. For example, its stablecoin in the ethereum ecosystem, called StableUSD (USDS), has only 752 holders and a market cap of $264,000, compared to market leaders Tether and USDC.

However, Stably is confident that its ordinals stablecoin can penetrate the cryptocurrency market. The token was created on May 22 with a maximum supply of 69,420,000,000,000.