Cardano Gives More Info on Stablecoin & New Partnerships, ADA Drops

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Fredrik Vold

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October 19, 2023

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After several major partnership announcements, more details about an upcoming stablecoin, and a new “shopfront” for decentralized applications (dapps), the Cardano (ADA) community wrapped up its Cardano Summit 2021 on Sunday. Meanwhile, ADA is the worst performer in the top 10 club today. 

At 12:15 UTC, ADA was trading down more than 3% in a day to a price of USD 2.21. The price is further down by 3% for the past 7 days, and 25% for the past 30 days.

Among the most anticipated news from the event, which was held partly online and partly in-person, was more details shared on the upcoming Cardano-based stablecoin Djed. 

For the first time, Cardano development firm Input Output announced during the event that the token will be issued by COTI, a fintech company that also has its own token with the same name.

According to COTI’s website, the firm already offers stablecoin issuance as a service to other companies in what it calls its “stable coin factory.” However, a collaboration with Cardano, ranked as the third most valuable cryptoasset, would be COTI’s highest-profile stablecoin project to date. 

Also, COTI’s stablecoin issuance process works by having the client “pay both minting and redemption fees to COTI’s Treasury, as well as network fees.” It is still unclear how these details will apply to the collaboration with Cardano, but the partnership could, nonetheless, be a major source of new revenue for COTI.

The Djed stablecoin has already been in the works at Cardano development firm Input Output for some time now, with the firm’s CEO, Charles Hoskinson, first sharing the stablecoin’s whitepaper in August this year. The whitepaper describes Djed as an “autonomous bank that buys and sells stablecoins for a price in a range […],” making it a crypto-backed algorithmic stablecoin.

Further during the event, Input Output also announced two new partnerships for Cardano; one with the oracle protocol Chainlink (LINK) and one with the major American satellite TV provider DISH Network.

In particular, the partnership with DISH Network, a publicly-traded Fortune 500 company, was highlighted by Cardano, and discussed in detail in a video with Hoskinson and representatives from DISH Network published over the weekend.

Meanwhile, the deal between Chainlink and Cardano was commented on by Niki Ariyasinghe, head of blockchain partnerships at Chainlink Labs, who said that the timing is right for a partnership between the two now, given the recent smart contract-enabling Alonzo upgrade of Cardano. 

However, Ariyasinghe noted that the integration between Chainlink and Cardano is “a non-trivial matter”, and that Chainlink will bring “very high security, reliability and scalability standards” with it. 

Also of interest for the Cardano community during the event was the announcement of a new curation and certification system for all dapps developed on Cardano, dubbed the Plutus dAppStore. 

The new type of app store was first teased by Input Output a few days ahead of the official unveiling, with the company saying the “shopfront” will provide “a trusted and democratized environment for developers to publish their dapps without facing censorship.”

Lastly, during the event, the commercial and venture capital arm of Cardano, Emurgo, announced that it is investing USD 100m to “accelerate the development of the Cardano ecosystem.”

The capital will be used to fund projects related to decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain education focused on Cardano, the announcement from Emurgo’s CEO Ken Kodama said.

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Learn more:

– Cardano’s Hoskinson Says He Just Got Math Center after USD 20M Donation
– ADA Falls as Cardano Completes Smart Contract-Enabling Upgrade

– Cardano Fuelled Again by Stablecoin and Smart Contract Progress
– 6YO Cardano Still Compensates Lack Of Adoption With Plans & Hopes

– Grayscale Launches Chainlink, Filecoin, BAT Trusts As Bitcoin Trust Closed
– Crypto Sector Baffled as Mysterious Report Calls Chainlink a ‘Fraud’