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Carbon Also Set to Launch Dollar-Backed Stablecoin

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After this week saw the release of two new stablecoins from both Paxos and Gemini, Carbon, a crypto project, will also be adding its own to the list, called CarbonUSD, an Ethereum-based coin.

Beginning with Wednesday, the new „compliant, price-stable” coin will be accessible to institutional account users, hedge funds, traders, and exchanges. In a press release, Carbon stated that it is “actively pursuing” the listing of CarbonUSD on exchanges.

Even though CarbonUSD will be issued in less than a week after the Gemini dollar and Paxos Standard will be launched on the markets, the team has faith the unique algorithm design of its coin will set it apart from its stablecoin rivals.

According to Miles Albert, the co-founder of Carbon, when CarbonUSD will reach a $1 billion market cap, Carbon will switch to a hybrid algorithmic model.

“We’ve already developed our algorithmic scale model, we’ve already done simulations as well, to test the resilience of our model,” said Albert. “From an algorithmic standpoint, we plan to whitelist our ‘metatoken’ structure after CarbonUSD has reached sufficient scale and liquidity.”

Seeing as the major stablecoin on the market, Tether is surrounded by controversy due to allegations of manipulation, gaining the community’s trust in another stablecoin might prove to be a difficult feat.

Albert however, did not seem perturbed by this situation and stated:

“We designed CarbonUSD to be as compliant as possible and in doing so we – our partner’s Prime Trust – and CarbonUSD will undergo frequent third-party attestation to verify that each token is one-to-one [dollar to token] backed. We really want to create a token that’s transparent, compliant.”

David Segura, the project’s chief marketing officer, stated that Carbon invested a considerable amount of time in developing Prime Trust (a blockchain-based trust company) to ensure that the “legal side” was covered. Those that wish to acquire CarbonUSD will have to use fiat currency deposits made via Prime Trust.

Carbon was able to gather back in April $2 million in seed funding from investors, including General Catalyst, Digital Currency Group, and FirstMark Capital.

“An algorithmic, fiat-pegged stablecoin will help drive utility and accelerate the adoption of crypto,” said the CEO of Digital Currency Group, Barry Silbert.

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