FAQ
What is a Stablecoin?
Any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm.
Who can use USDM?
USDM is available for both ordinary individuals and institutions. The USDM token can be freely used and transferred within the Cardano blockchain as any other Cardano native token.
To mint and burn USDM directly from Mehen, users must be located in eligible jurisdictions must pass standard KYC/AML identity verification.
How can I mint USDM?
USDM minting is not yet live.
When live, to mint USDM, users in eligible jurisdictions will connect their Cardano wallet to the Mehen dApp, complete identity verification, and link a bank account via Plaid integration. The user can then send USD from their bank account to mint USDM. The same bank account will be used if you choose to redeem USDM.
Are there any fees associated with USDM?
Cardano network fees apply to transactions involving USDM. Additionally, there is an account setup fee and nominal fees for minting and burning USDM.
Why is Mehen regulated?
Operating within the framework of regulations enhances compatibility and bridges the gap between the traditional financial system and the blockchain world. It allows for direct bridges to fiat money and ensures transparency and trustworthiness.
By having appropriate licenses, Mehen can offer valuable services beyond the USDM stablecoin, including sending remittances, performing managed treasury services, and offering point-of-sale payments features such as debit card functionality.
What is USDM?
USDM is a USD-backed stablecoin, issued on the Cardano blockchain. It is backed 1:1 by USD in a US-based bank, and can be purchased or redeemed for $1. The token conforms with the standard Cardano native token formats, with 6 decimal points, for maximum compatibility and compatibility within the Cardano blockchain ecosystem.
How does USDM work?
USDM is a fiat-backed Cardano native asset, functioning as a cash equivalent built on the Cardano blockchain. Every USDM token is backed 1:1 by USD in a US-based bank, and can be purchased or redeemed directly from Mehen for $1.
Every time USDM is created, or “minted” on-chain, the smart contracts that control the minting and burning must check the value of the Reserve Account.
The reserves check is done by an independent decentralized oracle which has direct read-only access to the Reserve Account. The oracle receives the Reserve Account balance value and places it directly on-chain without Mehen’s interference.
The smart contract then uses the oracle value to prevent excess minting of USDM.
Can I redeem USDM for USD?
KYC-cleared users in eligible jurisdictions can redeem USDM 1:1 for USD sent to a linked bank account.
What about licensing and regulations?
Complying with licensing and regulations is crucial to safeguard the rights of USDM tokenholders. Mehen is actively seeking Money Transmitter licenses in various US states and territories, VASP licenses in appropriate jurisdictions, and is working with partners in the UK and the EU.
How is Mehen ensuring compliance and security?
Mehen follows rigorous compliance processes, including thorough background checks, audited internal controls, compliances procedures, system monitoring, surety bonding, insurance, and daily on-chain reporting of the fiat asset portfolio backing USDM.