Coinfeeds Daily → Midas Launches New Stablecoin Backed by U.S. Treasuries

Midas Launches New Stablecoin Backed by U.S. Treasuries

Published: Nov 11, 2023 | Last Updated: Mar 17, 2024
Howard Kane

Midas aims to provide higher yields in DeFi with its stUSD token, backed by U.S. Treasuries, offering secure and compliant investment opportunities.

Introduction to Midas: The New Stablecoin

A new stablecoin named Midas is set to launch its stUSD token on decentralized finance (DeFi) platforms. The unique aspect of this stablecoin is that it is backed by U.S. Treasuries, aiming to provide higher yields than conventional DeFi products. The project is spearheaded by a team that includes Fabrice Grinda, founder of Global Technology Acquisition Corp., and Dennis Dinkelmeyer, vice president of GTAC.

Midas' Strategy and Partnerships

Midas intends to buy U.S. Treasuries through asset manager BlackRock and use Circle Internet Financial's USDC stablecoin as an on-ramp. This strategy is designed to leverage the stability of U.S. Treasuries, a traditional finance (TradFi) asset, and make it available in the DeFi ecosystem. To ensure the secure and compliant operation of this process, Midas has partnered with custody technology provider Fireblocks and blockchain analytics firm Coinfirm.

Regulatory Compliance and Security

The Midas stUSD token is fully backed by U.S. Treasuries and is issued as a debt security under German law. This ensures that the token is 100% backed, providing a level of security and stability to investors. Furthermore, the project is fully compliant with European Securities Regulation and Anti-Money Laundering law, demonstrating the team's commitment to operate within legal frameworks and provide a secure investment platform.

Looking Ahead

The Midas stUSD token is expected to be available on DeFi platforms in the coming weeks. This innovative approach to stablecoin investment, combining the stability of U.S. Treasuries with the potential yields of DeFi, could offer a new avenue for investors looking for secure yet high-yielding investment opportunities in the crypto space.

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