- Stably has launched a dollar-backed stablecoin on the Bitcoin blockchain
- Its USD coin uses the BRC-20 format that has taken the Bitcoin world by storm
- Stably claims that USD is the first stablecoin on the Bitcoin blockchain, but this honor goes to Tether
The Bitcoin world recently celebrated the launch of the network’s first stablecoin thanks to Stably, which has utilized the new BRC-20 format to bring a dollar-backed cryptocurrency to the network. Despite the celebrations of the milestone moment, some questioned the need for a stablecoin on Bitcoin when there are other networks out there already out there that do the job better than Bitcoin can, while Stably’s claim to operate the first stablecoin on Bitcoin is erroneous.
Holdings Attested but Not Audited
Stably is a crypto on-ramp and off-ramp which started life in the middle of the 2017 crypto bull run. Last week it announced USD, a dollar-backed stablecoin that uses Bitcoin’s ordinals technology and its BRC-20 standard to operate. Stably says that each USD complies with all local regulations and will undergo regular attestations:
Stably is thrilled to announce that we have launched the world’s first US Dollar #stablecoin on the #Bitcoin network. Introducing #USD, a groundbreaking #BRC20 token implemented through the Bitcoin #Ordinals Protocol 🎉#USD is backed and redeemable 1-to-1 for USD collateral… pic.twitter.com/cpsDul0uzr
— Stably (@Stably_Official) May 25, 2023
However, attestations use information passed by the operator, in this case Stably, to the firm, whereas an audit involves the auditor actually investigating the funds for themselves. Very few crypto exchanges and stablecoin operators have full audits, which remains a point of concern for many in the crypto space.
Tether Did it First
While the launch of a stablecoin on Bitcoin is a very interesting development, and certainly not one that anyone could have seen coming at the start of the year, to call it the first of its kind is not entirely accurate. When Tether first launched as Realcoin back in 2014 it did so on Omni Layer protocol on the Bitcoin blockchain.
So while Stably may be the latest to launch a stablecoin on the Bitcoin blockchain, its claim to have offered the first is erroneous.