By
Chimamanda U. Martha
April 29th, 2024
The newly introduced Midas stablecoin, set to integrate with DeFi platforms in the current quarter before a retail launch early next year in 2024.
Midas, a stablecoin backed by US Treasuries, plans to join the growing trend of convergence between cryptocurrency and traditional finance. The project plans to introduce its stUSD token to decentralized finance (DeFi) platforms such as MakerDAO, Uniswap, and Aave in the upcoming weeks.
The Midas stablecoin initiative aims to acquire Treasuries through asset manager BlackRock, utilizing Circle Internet Financial’s USDC stablecoin as an on-ramp, as outlined in the deck. Institutional partners include custody technology provider Fireblocks and blockchain analytics firm Coinfirm.
Current yields from traditional finance assets, such as US Treasuries, surpass the returns offered by typical DeFi products. The proposed solution, as outlined in the Midas presentation deck, involves tokenizing traditional finance products to integrate them into the DeFi ecosystem.
Tokenized real-world assets represent a burgeoning segment of the digital asset space, attracting interest from traditional finance firms seeking to leverage blockchain infrastructure for key aspects of markets and finance. Treasuries, in particular, have become a focal point, experiencing significant growth in 2023.
About the New Midas Stablecoin stUSD
The newly introduced Midas stablecoin, set to integrate with DeFi platforms in the current quarter before a retail launch early next year, aligns with the growing trend of yield-bearing stablecoins, exemplified by initiatives like Mountain Protocol and Ondo Finance. Notably, the proposed Midas stUSD project should not be confused with the now-defunct DeFi investment firm also named Midas.
Key figures within the Midas team include Fabrice Grinda, the founder and executive chairman of the blank-check company Global Technology Acquisition Corp. (GTAC), and Dennis Dinkelmeyer, the vice president of GTAC.
The Midas stUSD token is explicitly stated to be fully backed by US Treasuries and issued as debt security under German law, as outlined in the presentation deck. As per the presentation desk shared by Midas, it notes:
“Funds are held with a regulated custodian in segregated accounts (BlackRock). Midas is fully compliant with European Securities Regulation and Anti-Money Laundering law. Transfer of token represents transfer of legal rights to the underlying.”
A lot’s been happening recently in the stablecoin market as USDC issuer Circle is planning for an IPO in early 2024. Thus, introducing new stablecoin could help Midas make way for themselves in this evolving market.