Today, we are excited to announce that following several months of development, the contract for VeUSD, VeChain’s first native stablecoin, will soon go live on mainnet, ushering in a new era for VeChainThor.
With our global aims and ambitions, launching our stable token at the dawn of 2022 aligns with our projected ‘Growth phase’, a period where the technical maturity of products and services we have developed over the last 5 years begins to translate into accelerating real world adoption. Positive progress in the global regulatory climate and increased understanding of the value proposition of blockchain technology are setting the stage for rapid growth of the field.
Developed by Stably, onboarded by CREAM and with stablecoins issued by Prime Trust, a Nevada-chartered trust company from the US, VeUSD promises to unlock new applications and new functionalities for community and enterprise partners alike.
VeUSD - Gateway To A New VeChainThor
We selected Stably as a vendor due to their strict compliance with US and global regulatory authorities. As blockchain moves mainstream, compliance remains critical for maintaining our position as the leader of real-world implementation of blockchain. Compliance is key to our ubiquitous mass adoption, hence our close relationships with key channel partners and global authorities in this subject, DNV and PwC.
Stablecoins are, of course, no exception to this reality. Every single VeUSD minted will be fully backed by physical reserves of fiat money that can be redeemed at a 1:1 ratio at any time. Fiat accounts are monitored and audited by Prime Trust, a Nevada-chartered trust company that also acts as regulated administrator. With this in mind, users can rest assured VeUSD provides a fully compliant solution with a guarantee of dollar value.
One of the benefits of the Stably Prime platform is the ease at which users, whether enterprise or individual, can mint and burn VeUSD. Once a user has created an account on Stably Prime, they can deposit USD and quickly convert it to VeUSD. Users can also deposit other types of stablecoin on Stably Prime, convert them to USD and then convert the resulting balances to VeUSD.
A video tutorial will soon be created by Stably to help guide you through the minting/redemption process. We will share this once available.
We are also working on plans to integrate a widget directly into the VeChainThor wallet in Q1 2022, allowing for even easier access to VeUSD minting and redemption functions, greatly enhancing the user experience.
Stablecoins - A Gateway To A World of Applications
The arrival of a fully native stablecoin opens up a world of possibilities for VeChainThor.
In the coming weeks, we will launch a VeChain hackathon to incentivise and spur the development of tools and functions, as well as new types of protocols and projects on VeChainThor with prizes to be paid in VeUSD. Further details on this will be announced in due course.
In addition to the kinds of use cases typically associated with stablecoins, we also wanted to share some hypothetical but realistic scenarios for VeUSD to help you understand the broader scope of possibilities for VeUSD.
There are endless application scenarios for a stable coin on the world’s leading enterprise-grade smart contract platform.
Poverty Alleviation/Incentivised Ecosystems
With the arrival of VeUSD, comes the ability to quickly and easily pay decentralised actors from across the world.
We can imagine scenarios where cross-border payments can be made quickly and easily, directly to individuals helping with, for example, environmental remediation, ensuring all monies reach their targets while providing a free and easily accessible digital wallet for unbanked areas of the world, reducing friction and costs in areas where it makes the greatest difference.
The VeChainThor blockchain can store key data from across the data trail and make payments based on predefined criteria - for example, recovery of a certain weight of waste material from an environment, verified by compliant IoT technologies with processes certified by global compliance authorities.
With a stablecoin, VeChainThor is now able to provide similar DeFi functionality to networks such as Ethereum, but with vastly superior architecture.
Whether its our unique ‘Multi-task transaction’ function, where a single transaction can execute many actions at once or ‘fee delegation’ where a dApp owners can pay gas fees on behalf of their users making dApps ‘free’ to use, VeChainThor has many unique features that resolve critical challenges faced by other major blockchains.
Built to be highly scalable, cost-stable and to handle the high demands of Fortune 500s, VeChain’s architecture is perfectly suited to the diverse world of Decentralised Finance in both the legacy and emerging financial markets.
Automated Smart Contract Settlements
Business environments are complex and multifaceted, often featuring many companies and many moving parts. Such complex systems naturally lead to friction, delays and other inefficiencies borne from obtuse and siloed data systems. Blockchain and stablecoins provide a simple and elegant solution to many common headaches.
For example, when using blockchain within a supply chain, the location and subsequent delivery of a good can be known in near-real time. This allows for a scenario where the payment of a good can be released within a window of hours, rather than a period of months, as is often the case in the traditional business world.
The outcome of this is that the producer of a good can be almost instantly paid following the fulfilment of their service. In a world where supply chains operate ‘just-in-time, this provides a huge lifeline to small businesses who might lack the cash reserves to go for extended periods without payment while also helping to stabilise fragile global supply chains.
The addition of VeUSD greatly enhances our ability to develop incentivised ecosystems and encourage good behaviour at both the citizen and enterprise level by providing an ability to actively reward those who choose to participate and engage with sustainable/environmentally beneficial activities.
DNV’s low carbon ecosystem or San Marino’s recently announced Sustainable Development plan serve as powerful forerunners for the kinds of incentivised systems that will spring up globally in the years ahead. Using blockchain-based incentive systems, VeChain can help spearhead a societal revolution by encouraging positive contributions with rewards, a powerful mechanism for effecting change. Companies and countries will gain the means to devise entirely new ways to build out sustainable initiatives and tackle climate change.
Blockchain is widely considered the critical missing piece of the puzzle with regards to circular economics, a concept wherein resources become the responsibility of the producer, who must then return them to the start of the production cycle once an item has been disposed of. A stablecoin helps our partners build and empower change, transitioning the global economy to a more sustainable state.
Infinite Possibilities with VeUSD and VeChainThor
From just a few application scenarios above, you may start to sense the scale at which VeUSD brings benefits moving forward, this is by no means an exhaustive list.
The world is rapidly digitising and transitioning to a world governed by data. Interconnectedness and a need for near-instantaneous transmission of information and value are becoming the new norm and blockchain provides the critical layer that underpins this new digital epoch.
As we look ahead, we are incredibly excited by the potential this new tool delivers, for both enterprise and community users alike.
The age of blockchain is almost upon us with many revolutionary applications to follow. Join us for this journey - you won’t want to miss it!