e-Money Set to Bring European Stablecoins to Avalanche Ecosystem

e-Money, a blockchain payment provider, is introducing its fiat-pegged European stablecoins to Ethereum’s competitor Avalanche network.

The Danish fintech firm will introduce its suite of fully collateralized interest-bearing stablecoins to the blockchain next week at the annual Avalanche Summit in Barcelona, giving Avalanche users the ability to trade e-Money stablecoins, Euros (EEUR), Swiss francs (ECHF), Norwegian krone (ENOK), Swedish krona (ESEK), and Danish krone (EDKK).

By allowing European members of the Avalanche community to conduct transactions in their local currencies, e-Money hopes to broaden the blockchain’s reach while also encouraging the wider use of crypto-assets.

The addition of e-Money’s European stablecoins to Avalanche marks a significant milestone for the Copenhagen-based startup, which was founded in 2016. The platform’s collection of liquid, trustworthy stablecoins, built on Cosmos technology, are backed by government bonds and deposits held at commercial institutions, with proof of funds validated by Ernst & Young.

Stablecoins are an important part of the crypto economy, but the great majority of them are tied to the US dollar. Tether (USDT) and USD Coin (USDC) are widely used fiat-collateralised stablecoins that maintain their one-to-one peg by relying on trusted custodians to keep an equivalent amount of fiat cash in reserves.

Stablecoins, which are regarded as a critical building component for defi traders, have grown in popularity in recent years: the worldwide market is now worth a remarkable $184.5 billion, up from roughly $60 billion just a year ago.

Stablecoins in e-Money work a little differently than consumers are used to, since their value fluctuates based on the interest collected on the reserve assets.

By maintaining a slow-moving dynamic peg, e-Money stablecoins basically provide users the potential of earning a return merely by storing assets in their wallet during periods of positive interest, and in a negative interest environment, the tokens stay flexible and will not break their peg.

Meanwhile, the platform’s native chain enables immediate finality with near-zero costs.

With the addition of e-fiat-backed Money’s digital currencies to Avalanche, European firms may now participate in defi on favorable terms, while end users can make and receive payments rapidly without fear of market volatility wiping out their profits.

Avalanche just recently added stablecoins to its economy, with USDT and USDC arriving on the open-source network late last year. However, this recent collaboration represents the first time European stablecoins have been made available in the defi ecosystem.

The scalable smart contracts platform, which allows a wide range of decentralized apps and customized blockchains, has swiftly surpassed Terra and Ethereum to become the third largest chain by Total Value Locked (TVL). At the time of writing, its defi applications had a total value of $15.5 billion.

It is not the first time that e-fully Money’s collateralized European stablecoins have appeared on the blockchain. Last year, the protocol released its range on the Cosmos and Ethereum networks, allowing them to be used in decentralized exchanges (DEXs) and liquidity mining campaigns such as Osmosis AMM and Sifchain.

The stablecoins will soon be available on Binance Smart Chain (BSC), Algrorand, Polygon, and Elrond, and a number of play-to-earn gamefi projects are looking at incorporating the suite into their metaverses.

Details on which protocols and AMMs will be the first to use e-stablecoins Money’s are likely to be released next week, when developers, researchers, and investors from across the world gather in Barcelona to talk all things Avalanche.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

CoinCu News