Carbon-12 Labs, a New York-based blockchain startup also known as Carbon, has been developing a stablecoin dubbed CarbonUSD (CUSD), and on November 9, 2018 it’s been announced to be available on the EOS platform.
According to Carbon, their stablecoin CUSD, is a compliant, price-stable cryptocurrency that is pegged one-to-one with the USD, which is independently audited as well as easily redeemable with fiat currency.
Carbon’s CUSD was originally on the Ethereum platform on September 12, 2018, before the company’s CEO and founder Samuel Trautwein decided to make fully-collateralized 1:1 by U.S. dollars stablecoin held in FDIC-insured accounts, available to the EOS platform.
According to Carbon’s team, this coin will be moving into many directions, past it’s 1:1 USD pegging:
“CarbonUSD, or CUSD, will be composed of a basket of whitelisted tokens. A token that is “whitelisted” may be used to create new CarbonUSD, serving as its collateral. Initially, only one token will be whitelisted, a stablecoin that is 1-to-1 backed with U.S. Dollars in a trust account.”
The reason for the move to the EOS blockchain was detailed by a blog post by Trautwein:
“Carbon’s interoperability solution enables CarbonUSD users to transfer their tokens onto the EOS blockchain, where users can transfer CarbonUSD with even lower fees and faster settlement than on Ethereum. We are honored and excited to be the first stablecoin on EOS and to play such a crucial role in such a burgeoning ecosystem. Stablecoins are critical infrastructure for value and we think providing this to EOS further enhances the ecosystem.”
The company also explained how to create new CarbonUSD tokens. In order to create new tokens than users will need to make fiat deposits with Nevada-based Prime Trust, the company’s partner bank. After the deposits are made, third-party attestations by auditor Cohen & Co. will verify that the stablecoins are backed 1-to-1 by escrowed funds in a trust account.
Carbon announced that they are excited to work with the global EOS Community, Block.one, with Trautwein stating:
“I’ve always appreciated how forward looking many members of the EOS community are and am incredibly excited that we can now play a larger role in working with this community to build a better future.”