Stablecoin Provider Stably Aims At “Effortless” Crypto To Fiat Transfersbr>
Stably is the producer behind StableUSD, a fiat-collateralized stablecoin. StableUSD is backed 1:1 by US dollars. The company’s public launch and customer signups will begin in December, and StableUSD trading pairs will also be listed on major exchanges then.
Stably CEO Kory Hoang talked with Block Tribune about the company plans.
BLOCK TRIBUNE: Is there a need in the marketplace for more than one or two stablecoins? Why?
KORY HOANG: Stablecoins have the advantage of virtually eliminating price volatility while still retaining many useful characteristics of cryptocurrencies – fast transaction speed, anonymity, and immutability. Despite these benefits, however, stablecoins have unique risks that are important to understand – specifically counter-party risks. There are several layers of counter-party risk associated with any stablecoin project.
This can include regulatory risk, i.e. proper state and federal licensing; custodial risk, i.e. trust in the bank or custodian holding; reserve risk, i.e. trust in a 1:1 backing of the issued stablecoins; security risk, i.e. secure code underlying a stablecoin’s platform and smart contract infrastructure; and network risk, i.e. traffic and usability impact for stablecoins built on any one blockchain protocol. Users of stablecoins will also face varying degrees of redeemability for each of these stablecoins, as it relates to the process, speed, and fees associated with moving between fiat and crypto. As more and more stablecoin projects come into play, we’ll see users moving towards projects that they have confidence in across these decision points.
BLOCK TRIBUNE: What are Stably’s trading pairs?
KORY HOANG: Initially, the first trading pair Stably will look to list USDS against is BTC. As we grow, we will look to list against USDT and other stablecoins. Afterwards, we’ll continue to expand across top tokens by volume world-wide.
BLOCK TRIBUNE: What should the balance be in a portfolio between stablecoins and other cryptos not tied to the USD?
KORY HOANG: This all depends whether one is bullish (low ratio), or bearish (high ratio) on the digital asset market.
BLOCK TRIBUNE: Okay, so no suggestion. As more stablecoins enter the arena, what will the effect be on the overall crypto marketplace?
KORY HOANG: The digital asset market will gain in trading volume, as stablecoins make it easier to trade in and out of positions. This will give traders the flexibility and safety of a sideline if one wishes to exit the market in a temporary fashion.
BLOCK TRIBUNE: Will most governments develop their own coins? How will that affect the marketplace for coins like yours?
KORY HOANG: If this happens, we see it occurring much further into the future. There are a few reasons we think that this is unlikely to happen. Central banks will most probably not develop their own digital currency, as they will lose control over monetary levers they currently control. Additionally, the symbiotic relationship that commercial banks have with central banks will be disrupted once they start to issue directly onto a blockchain.
BLOCK TRIBUNE: How much of a reserve do you anticipate having at launch?
KORY HOANG: We are planning a launch with a reserve that is sufficiently adequate to provide liquidity and maintain our peg on exchanges that we launch on. This will be supported by several market maker partners that we are working with, as well as funds we are raising to build our initial reserve.
BLOCK TRIBUNE: Okay, no number. What will the stablecoins be used for in your ecosystem?
KORY HOANG: In the short term, stablecoins will be used by cryptocurrency traders to move in and out of other cryptocurrency positions. As we grow, we will expand into peer-to-peer transactions between merchants, individuals, or any combination thereof – this will be particularly beneficial to cross border payments. Additionally, we see stablecoins acting as an accessible and stable currency for the unbanked or people living in economies experiencing hyperinflation.