In an Oct. 23 statement, IOG revealed that it had appointed Sean Ford, a former CEO of Algorand, to helm the affairs of the unnamed stablecoin venture. David Markley, another former executive from the same rival blockchain network, would support him as COO.
IOG did not provide additional information about its new stablecoin company.
IOG CEO Charles Hoskinson highlighted the new venture’s important role in “developing stablecoins and other payment solutions” that would help the blockchain industry realize its mission and fully protect its values.
“We have a unique opportunity to bring interoperability, security, and proper governance to our industry backed by our first principles research and evidence-based software approach. I believe this will deliver the promise of cryptocurrencies to the developing world and improve the systems of developed markets,” Hoskinson added.
Ford corroborated this view, saying he was excited “to create and launch the next generation of stable assets.”
Stablecoins are pivotal to the emerging industry as they are heavily used for remittances and payments. They are digital assets designed to maintain value irrespective of the market fluctuations associated with the broader crypto sector. Data from CryptoSlate shows that the space currently boasts a market capitalization of $125 billion, underscoring its relevance to users.
Despite the widespread popularity of stablecoins, Cardano has faced challenges in gaining a significant market share, even with the introduction of projects like DJED, USDA, and others. Currently, stablecoins issued on Ethereum and Tron continue to dominate, collectively holding nearly 90% of the market, according to DeFillama data.
Meanwhile, the stablecoin sector has faced heightened regulatory scrutiny across the globe due to the failure of Terra’s algorithmic stablecoin last year. Regulators in the U.S. and Singapore are introducing new regulations to better protect people under their jurisdictions.