Carbon launches the first stablecoin on Hedera Network
Sep 18, 2019
by Miles Albert
Founder, Carbon

We are pleased to announce that we have launched a fiat-backed stablecoin, CarbonUSD, on the Hedera Hashgraph next-generation public distributed ledger.

What is CUSD?

CarbonUSD, or CUSD for short, is a compliant fiat-backed stablecoin where users can deposit and withdrawal real USD. To mint new CUSD tokens, users can make fiat deposits via ACH or Wire Transfer with our financial partner, Nevada-based Prime Trust. Frequent third-party attestations by leading auditor Cohen & Co. verify publicly that each token is backed 1-to-1 by escrowed funds in FDIC-insured accounts with Prime Trust’s banking partners.

Carbon Fiber, and How Your Project Can Benefit

We’ve also listed CUSD in our fiat on / off ramp API, Carbon Fiber, which offers the best rates and fastest delivery in the industry for credit and debit purchases of crypto-assets. Here are some key features below:

  • Low fees: 2.99% or $2 minimum fee for purchases with Visa, MasterCard, and Apple Pay. No hidden spread fees. No fee for ACH and Wire deposits to mint CUSD, and 0.1% for withdrawals.
  • Widespread support: Pay via credit/debit with 184 fiat currencies from over 100 countries globally.
  • Fast settlement and on-boarding: Crypto transfers are initiated within seconds of card purchase authorization. Enter your payment details, authorize purchase, and see HBAR-CUSD settle in the recipient’s wallet address all within 20 seconds.
  • Fiat off-ramping and merchant dashboard (New): Accept CUSD or other cryptocurrencies, instantly convert to your local fiat currency. Supported off-ramps include SEPA and PayPal, with more methods launching soon. Track analytics including volume and transaction success rate via our merchant dashboard.

By offering integration of Fiber to dApps on the Hedera Hashgraph platform, projects that choose to accept payment in CUSD or HBAR will be able to onboard customers from within their own ecosystem. Built by developers, for developers, the API integration process is quick and painless, and Carbon handles all chargeback risk, liquidity management, and the optional KYC process for increasing user purchase limits.

You can see an example of the API in action on Carbon’s payment portal, where the widget is fully powered by the public API. For those interested in using CUSD as a payment option, it is also fully redeemable into USD through Carbon’s website. Carbon Fiber and CUSD are also available on the Hedera Hashgraph testnet, for easy testing during the development process. To begin development with Fiber, check out the docs.

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The Hedera Network Advantage

Faster, cheaper transactions. We believe Fiber’s payment rails and overall user experience coupled with CUSD on the Hedera platform, which enables settlement in seconds with micro-cent transaction fees, even when sending the stablecoins across borders and to unbanked recipients, will make applications that leverage these features very intuitive for mainstream users.

Stability. One useful property that the Hedera platform offers as a distributed ledger is stability, or “fork-resistance”, coupled with its council governance model. Counterparties who use CUSD within a smart contract agreement can be assured that their tokens will never fork along with a competing version of the Hedera ledger, in which case there would be two versions of CUSD but only one version with 1-to-1 fiat redeemability. For fiat-backed stablecoins on blockchains that allow and encourage forking, unlike the Hedera platform, we believe its users will ultimately be subject to the governance of the stablecoin operators, e.g. regardless of which blockchain that two or more counterparties would like to continue to honor their smart contract agreement. Fork-resistance, therefore, may become a required property for many owners of asset-backed tokens.

Decentralized applications (“dApps”) building on the Hedera platform can integrate CUSD and Fiber today by visiting: https://docs.carbon.money