Jack Jia Introduces USD3 at Consensus 2024

Jack Jia, the former Consensys employee and founder of Stable.com, has launched USD3, a new 'payments-first' stablecoin.

This launch comes despite the current lack of a regulatory framework and market uncertainties. Jia made the announcement at the ongoing Consensus 2024 event, which is being held in Austin, Texas, from May 28 to 31.

What is USD3?

USD3 is a 1:1 backed stablecoin designed to serve as an extension of the U.S. dollar for global commerce and Web3.

The stablecoin has been launched on Ethereum, Polygon, Avalanche, and Linea. Stablecoins are a type of digital asset designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency like the U.S. dollar, a commodity like gold, or even other cryptocurrencies.

Crypto traders often use stablecoins for trading, borrowing, and lending in decentralized finance (DeFi).

Others rely on them to access the dollar's stability in countries where dollars are otherwise unobtainable.

The primary purpose of stablecoins is to combine the benefits of digital currencies, such as fast transactions and security, with the stability of traditional currencies.

Vision for USD3

"We learned from the mistakes of previous players and know what they lack today - our vision for USD3 is future-proof," said Jia in a press release. "The plan is to reach mass adoption of our stablecoin and become a base for a new global payments system," he added.

The Stablecoin Market Landscape

The most well-known stablecoin is Tether (USDT), which aims to maintain a 1:1 value ratio with the U.S. dollar. It is widely used in the crypto market for trading, transfers, and as a store of value.

Other notable stablecoins include USD Coin (USDC). There has been ongoing discussion about which stablecoin, Tether's USDT or USD Coin USDC, is safer.

Regulatory Landscape

In the U.S., the newly introduced bill—the Lummis-Gillibrand Payment Stablecoin Act—was introduced on April 17. Regulatory clarity around the stablecoin market is expected to encourage wider adoption.

Most recently, the U.S. credit ratings firm S&P Global stated that changes in rules under the Lummis-Gillibrand Payment Stablecoin Act could see U.S. stablecoin adoption soar, as the regulatory framework could bolster confidence.

In Europe, the Markets in Crypto Assets Regulation (MiCA) requires issuers of pegged currencies to comply with regulations. However, the lack of clarity has led some exchanges to de-list Tether's USDT.

For instance, OKX discontinued support for Tether's USDT stablecoin for users based in the European Union and the European Economic Area in March.