Based on the Ethereum network, the Carbon team plans to shift the stablecoin protocol on scalable algorithmic model Hedera Hashgraph, once it reaches sufficient liquidity.

This week, despite the cryptocurrency market meltdown, stablecoin projects are making the news! On Monday, Gemini Trust Company and Paxos Trust Company announced their own USD-pegged stablecoins – Gemini Dollar and Paxos Standard respectively. Both the stablecoins are tied to the U.S. Dollar in 1:1 ratio and regulated by the New York Department of Financial Services (NYDFS).

In yet another announcement, cryptocurrency startup Carbon announces its own CarbonUSD stablecoin based on the Ethereum network. The cryptocurrency startup is currently in talks with different exchanges for listing the stablecoin. The official website calls the CarbonUSD as “a price-stable cryptocurrency that is creating a more efficient and inclusive global economy.”

The company aims to source further liquidity to the crypto market by making CarbonUSD available to exchanges, trades, hedge funds, and institutional investors.

Unique Algorithmic Model for the CarbonUSD

The Carbon team believes that its unique algorithmic model gives it a distinct identity in comparison to its competitors. the team is currently working on interoperability of CarbonUSD, based on Ethereum, with other blockchain protocols. If CarbonUSD reaches $1 billion market cap, the team will shift the stablecoin protocol to a more robustHedera Hashgraph public network, which is currently under development.

In a word with CoinDesk, Carbon co-founder Miles Albert said:

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

With current doubts and speculations surrounding the use of stablecoins like Tether, Carbon team will have to make additional efforts to create trust among users. Replying on this issue, Albert said:

“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.”

Carbon CMO – David Segura said that the startup is working with its banking partner Prime Trust who will keep all the USD deposits against investors buying CarbonUSD. A third-party auditor Cohen & Co. will verify that each token in circulation is backed 1:1 with the USD deposits. This way the company plans to keep all the legal aspects surrounding the stablecoin, under check.

Earlier this year in April, Carbon raised $2 million funds in a seed round from investors like Digital Currency Group, General Catalyst, and FirstMark Capital. Barry Silbert, CEO of Digital Currency Group, then said: “An algorithmic, fiat-pegged stablecoin will help drive utility and accelerate the adoption of crypto.”

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