BitGo , a leading digital asset custodian, will offer custodial services for USDA, a Cardano -based stablecoin, according to an Oct. 1 press release .

This collaboration involves BitGo Trust, USDA’s issuer Anzens, and EMURGO, the technology provider for the Anzens platform. Together, they aim to build a secure stablecoin solution for the Cardano blockchain. This would enhance USDA’s security and functionality by integrating it with advanced financial infrastructure.

According to the release, BitGo’s participation will strengthen USDA’s security and efficiency, aligning with Anzens’ goal of bridging traditional finance and cryptocurrency ecosystems. The partnership will streamline and ensure compliance for minting, burning, and custody services.

Stablecoins remain vital to the crypto industry due to their extensive use in remittances and payments. These digital assets are designed to maintain value, shielding users from the volatility typical of other cryptocurrencies. As of Oct. 1, stablecoins had a $173 billion market cap, reflecting their significant relevance in the crypto industry.

Despite their significance, Cardano has struggled to capture a significant market share, with stablecoins issued on Ethereum and TRON controlling nearly 90% of the market , according to data from DeFiLlama.

USDA’s comeback

Meanwhile, this development takes place as USDA aims to return after a break in 2023. The Anzens team temporarily halted communication with the community due to regulatory uncertainty surrounding the stablecoin industry.

However, EMURGO announced that the digital asset would relaunch under new ownership later this year. According to information on Cardano’s Forum, the USDA stablecoin will be launched by Encryptus, a Dubai-based platform established in 2020.

According to the platform:

“[Encryptus] enables smooth buying and selling of digital assets, facilitating conversion to local currencies. Encryptus prioritizes compliance, holding a European license, VASP status in Lithuania, and boasting the largest payout network spanning over 80 countries.”

The company further stated that users can buy and sell USDA through the Anzens website after completing know-your-customers (KYC) verification. USDA will also be available through select partners and redeemable at a 1:1 ratio for USD. Users in over 80 countries will have access to the stablecoin in their local currencies.