Navigating the World of Mehen & USDM
Frequently Asked Questions
Dive into our comprehensive FAQ section where we address the most common questions about Mehen, USDM, and our commitment to transparency, security, and innovation in the Cardano ecosystem. Whether you’re new to the world of stablecoins or seeking specific details about our operations, find your answers here.
Note: This FAQ page provides essential information about USDM, its functionality, regulations, and benefits. For more detailed inquiries, please contact our support team.
Understanding USDM & Mehen
What is a Stablecoin?
A stablecoin is a type of cryptocurrency designed to have a relatively stable price, typically achieved by pegging it to a commodity or currency or by regulating its supply through an algorithm.
What is USDM?
USDM is a USD-backed stablecoin issued on the Cardano blockchain. It’s backed 1:1 by USD in a US-based bank and can be purchased or redeemed for $1. USDM conforms with the standard Cardano native token formats, ensuring maximum compatibility within the Cardano blockchain ecosystem.
How does USDM work?
USDM functions as a fiat-backed Cardano native asset, acting as a cash equivalent on the Cardano blockchain. Every USDM token is backed 1:1 by USD in a US-based bank. The issuance and management of USDM are governed by smart contracts and decentralized oracles, ensuring transparency and security.
Minting, Burning, and Verification
How can I mint USDM?
USDM minting is not yet live. Once operational, users in eligible jurisdictions can connect their Cardano wallet to the Mehen dApp, complete identity verification, and link a bank account via Plaid integration to mint USDM.
Can I redeem USDM for USD?
Yes, KYC-cleared users in eligible jurisdictions can redeem USDM 1:1 for USD sent to a linked bank account.
What measures are in place for On-Chain Verification?
Mehen USDM is transparently verified by a 3rd party oracle. We’ve adopted a decentralized approach to reserve verification, ensuring all token mints and burns are verified by an independent oracle service with API access to our bank accounts.
Licensing, Regulations, and Compliance
Why is Mehen regulated?
Operating within regulatory frameworks enhances compatibility between traditional finance and blockchain. It allows for direct bridges to fiat money and ensures transparency and trustworthiness. By obtaining appropriate licenses, Mehen can offer valuable services, bridging the gap between the traditional financial system and the blockchain world.
What about licensing and regulations?
Complying with licensing and regulations is crucial to safeguard USDM tokenholders’ rights. Mehen is actively seeking Money Transmitter licenses in various US states and territories, VASP licenses in appropriate jurisdictions, and is collaborating with partners in the UK and the EU.
How is Mehen ensuring compliance and security?
Mehen adheres to rigorous compliance processes, including thorough background checks, audited internal controls, compliance procedures, system monitoring, surety bonding, insurance, and daily on-chain reporting of the fiat asset portfolio backing USDM.
Are there any fees associated with USDM?
Cardano network fees apply to USDM transactions. Additionally, there’s an account setup fee and nominal fees for minting and burning USDM.
Who can use USDM?
USDM is available for both individuals and institutions. While anyone can hold, transfer, or use USDM within the Cardano blockchain, minting and burning USDM directly from Mehen requires users to be in eligible jurisdictions and pass standard KYC/AML identity verification.
Have More Questions? We’re Here to Help!
If our FAQ didn’t cover your specific question or if you’d like more detailed information on a particular topic, please use the form below. We value your inquiries and aim to provide timely and comprehensive responses.