New System by Circle and Paxos Ensures Genuine Stablecoins
Circle and Paxos are leading the way in ensuring real stablecoins. They just started testing a special tool that checks who makes these digital tokens.
This “know-your-issuer” feature helps stop fake stablecoins. It uses hidden codes to prove where each coin comes from. No more need for outside checks or imitations.
The tech, built with Bluprynt, tracks real issuers like USD Coin (USDC). Tests show it effectively works on different blockchain networks. This gives regulators and makers a clear view of token origins.
- Boosts trust in stablecoins
- Supports wider use of stablecoins
- Follows U.S. GENIUS Act rules
Circle and Paxos aim to work under one federal overseer. Paxos refiled for a national trust bank charter on Aug. 11. This move goes beyond their New York license.
The new system fits well with the GENIUS Act. It could lead to trillions in stablecoin use.Tools like Ethena’s USDtb and Frax Finance’s frxUSD,which rely on U.S. Treasury bonds, stand to benefit too.
This advancement brings clarity and safety to stablecoins. It cements their role in the digital economy by enhancing user confidence and integration within decentralized finance.
