Decentralized financial contracts platform UMA and Decentralized Autonomous Organization (DAO) MakerDAO have entered into a partnership to release a token tied to the U.S. stock market.
USStocks, an ERC-20 token which has already been launched on the Ethereum blockchain, will allow investors to access the U.S. stock market without the necessity of buying stocks. This means that they will be exposed to the market through the acquisition of this new token.
Initially, users will only be able to buy the USStocks tokens on DDEX with Dai, MakerDAO’s own stablecoin.
The announcement made by UMA on its blog explained:
"USStocks is an ERC-20 token that represents synthetic ownership of an index of the 500 largest exchange-listed U.S. stocks. This means that anybody with access to the Internet and digital money can take part in the U.S. stock market."
According to UMA, the token tracks an index made up of the largest 500 companies on the New York Stock Exchange and Nasdaq.
Users will be able to exchange their USStocks tokens for Dai on May 15.
Why it is important
- The market has recently witnessed the appearance of an increasing number of stablecoins, mainly linked to the U.S. dollar, which clearly reflects they are gaining popularity in the crypto sphere. For example, Iran announced in February its intention to launch its own stablecoin linked to gold and the crypto exchange Huobi also reported in January it planned to develop a stablecoin as soon as this year.
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