Cardano will soon have a new DeFi stablecoin with COTI

Previously partnered with COTI, Cardano is going to have its first stablecoin, dubbed Djed, giving space to cheaper transactions and making it easier to run DeFi projects.

Software development company COTI announced a few hours ago the issuance of the first stablecoin designed to run on the Cardano blockchain.

The news was first revealed by Charles Hoskinson, leader of Cardano, and Shahaf Bar-Geffen, CEO of COTI Group, at the Cardano Summit stage in Laramie, Wyoming.

The Djed stablecoin will be issued on Cardano and will promote the growth of its nascent ecosystem, especially now that the blockchain is beginning to support smart contracts and markets have strong expectations about the possible development of DeFi platforms on a blockchain that has been touted as the future ‘Ethereum killer.’

According to Djed’s research paper released in August, its stablecoin protocol will behave like an “autonomous bank that buys and sells stablecoins for a price in a range that is pegged to a target price.” The stablecoin will operate by maintaining a reserve of base coins while minting and burning various other stable assets and reserve coins.

According to Hoskinson, the Djed stablecoin could be a game-changer in the crypto industry as it appeals to an “entirely new audience at a time when the industry is already experiencing astronomical growth.”

The news comes shortly after Coti partnered with Cardano’s stablecoin hub, Ardana, to bring decentralized stablecoin payments to AdaPay, a Cardano (ADA) payment gateway supporting over 30 fiat currencies.

COTI’s price jumped to a new all-time high following this weekend’s announcement, but Cardano remained steady. Perhaps that’s because speculation over its smart contract launch at the start of the month had already pushed the price up considerably.

However, in the long term, the Djed stablecoin may indeed address a number of issues for developers, especially with DeFi. It’s also worth looking at the other announcements that came out of the Cardano Summit. These include several new partnerships, a reforestation project that will be tracked on the blockchain, and a sports NFT deal. All in all, Cardano continues to deserve its top spot on the cryptocurrency charts.