Cardano founder Charles Hoskinson has proclaimed Moneta Digital's USDM stablecoin as "becoming the most advanced stablecoin ever built" following a multi-day workshop in Buenos Aires focused on privacy-preserving digital dollars. Hoskinson's July 31 announcement on X highlighted progress toward creating the "first Private Stablecoin," coinciding with technical details from Cardano developer Andrew Westberg.
Westberg outlined a sophisticated role-based access model where: payroll recipients see only their payment, accountants view amounts without personal details, CFOs access complete data, and court investigators gain full transparency during discovery. He emphasized this "cambrian explosion of complexity" is necessary to replace traditional finance systems, noting the Argentina-focused solution is "10x to 20x" more complex than standard USDM implementation.
USDM operates as a regulated, fiat-backed stablecoin on Cardano's base layer, issued by FinCEN-regulated Moneta Digital LLC. Reserves are held in bank deposits and money market funds managed by Fidelity and Western Asset Management. Currently, $12 million USDM circulates across 19 U.S. states with a $1,000 minimum minting threshold.
Parallel development is underway for a privacy-focused variant called "ShieldUSD" on Midnight – Cardano's zero-knowledge partner chain. This version features granular permissions and selective disclosure capabilities but loses privacy when bridged to public chains. Westberg defended the approach against critics preferring simpler solutions like USDC, stating existing stablecoins cannot meet enterprise privacy-compliance requirements for payroll, utility payments, or remittances.
The initiative addresses Cardano's critical stablecoin liquidity shortage, where stablecoins cover just 9.65% of DeFi TVL versus over 100% on Ethereum and Solana. Near-term goals include expanding licensed jurisdictions, growing USDM reserves, and integrating with Cardano DeFi. At publication time, ADA traded at $0.72.
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