Original author: Jiang Haibo, PANews

Original author: Jiang Haibo, PANews

On May 25th, Stably tweeted that it has issued a USD-backed, regulatory-compliant stablecoin #USD on the Bitcoin Ordinals protocol. Subsequently, UniSat, Ordinals’ main wallet and NFT marketplace, also said it had partnered with Stably. It would undoubtedly be more convenient for users to be able to use stablecoins to buy and sell BRC 20 tokens on the UniSat marketplace. Stably is not the first time that stablecoins have been issued. Stablecoins have been issued on chains such as Ethereum, Harmony, and Stellar before.

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Basic Information of BRC 20 #USD

The stablecoin issued by Stably is called Stably USD, usually denoted by USDS. Since the USDS in Ordinals has been occupied, and the BRC 20 token symbol cannot be repeated and must be 4 characters, Stably finally chose "#USD" to represent the stable currency issued by itself.The maximum supply of #USD employs the theoretical maximum limit of 69.42 trillion BRC 20 tokens. According to the publishedTreasury wallet

Note that Stably does not directly hold the USD needed to issue #USD, but rather it is held by custodian company Prime Trust. Prime Trust assisted Stably with escrow, setting up an escrow account with a bank with FDIC deposit insurance. But Prime Trust itself is not an FDIC-insured depository institution or bank. FDIC deposit insurance covers only $250,000 per customer, and FDIC deposit insurance will not protect Prime Trust from bankruptcy or unauthorized access to accounts. .

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Stably #USD Minting, Redemption Requirements

According to Stably, #USD is a stablecoin that meets regulatory requirements, and there are no requirements to buy or sell #USD in the secondary market. But if you want to mint or redeem #USD through Stably, you need to follow the corresponding compliance process.

First, users need to register a Stably Ramp account, pass KYC verification, add a bank card payment method, and create a transaction request. The Stably team then contacts the customer via email within 2 business days with instructions on next steps.

When buying stablecoins, customers deposit USD or USDC/USDT into Prime Trust and receive #USD in a BRC 20 wallet. When selling, send #USD to Treasury wallet address, receive USD or USDC/USDT.

Additionally, while there are no fees for minting and redeeming, Stably charges a 0.5% conversion fee if minting using USDT/USDC; there is also a flat fee for Fedwire or SWIFT deposits. On this basis, the gas fee of the blockchain network also needs to be paid.

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Stably USD is issued on 12 chains, but on a smaller scale

Stably USD has been issued on 12 different chains, including Bitcoin's Ordinals protocol, but the overall scale is not large. According to the independent accountant’s report provided by The Network Firm for Stably, as of April 30, 2023, Stably’s USD circulation totaled 7,258,534, the reserve account balance was 7,258,974 USD, and the reserve was slightly higher than the USDS circulation.

According to this information, Stably’s license for issuing stablecoins seems to be far behind that of stablecoin issuers such as Circle. For example, Circle also holds a BitLicense license from New York State.

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Stably Stablecoins Are QuestionedDecrypt articlethe opinion of.

• the opinion of.

• #USD has a total supply of 69.42 Trillion, but no reserves. Restricted by BRC 20 rules, #USD cannot increase supply according to demand, so the theoretical upper limit of BRC 20 tokens is directly used as the circulation. While Stably claims that all #USD held by Treasury wallets should be considered unissued tokens, this may raise concerns as these tokens already exist in Treasury wallets and can be transferred or sold at any time.

• Stably claims that its subsidiary Stably Trading LLC holds FinCEN's MSB license, but Decrypt claims that the registration number given by Stably's official website does not match the content on the FinCEN website.

• The price of USDS, a stablecoin issued by Stably in the past, was not stable enough. According to data from CoinGecko, over the past year, USDS has risen as high as $10 and dropped as low as $0.6.

Stably’s custodian, the Prime Trust, does not hold Stably’s dollar reserves directly, nor is it FDIC-insured, but holds dollars in several banks.