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Crypto: A new generation of stablecoins backed by US Treasury bonds

Fri 09 Feb 2024 ▪ 3 min of reading ▪ by Fenelon L.

The M^0 protocol, developed by M^0 Labs and supported by Pantera Capital, could indeed disrupt the stablecoin market by enabling institutions to easily issue stablecoins backed by U.S. Treasury bills.

Crypto dollar et un chevalier solitaire

M^0: The New Generation of Institutional Stablecoins

The innovative M^0 protocol (pronounced “M Zero”) represents a turning point in the world of stablecoins backed by U.S. Treasury assets. It paves the way for simplified issuance of crypto dollars guaranteed by U.S. Treasury bills, offering an unprecedented opportunity for institutions.

Conceived as a “monetary middleware for the digital age,” the M^0 protocol establishes a regulatory framework through smart contracts to govern the minting and issuance of stablecoins backed by U.S. Treasury bills.

The goal is indeed clear: to create fully decentralized, interoperable stablecoins with impeccable institutional quality.

M^0 thus opens the doors for all crypto institutions to mint their own stablecoins backed by U.S. Treasury bills, without relying on centralized intermediaries. This approach marks a departure from the current trend where each actor creates their own stablecoin without considering interoperability.

We are trying to recreate networks, with rules and smart contracts so that people interact and produce digital assets,” said Luca Prosperi, CEO of M^0 Labs in an interview stated.

The M^0 protocol draws inspiration from MakerDAO, a pioneer in the field, to make its ideas more institutional. It positions itself as a kind of governor of the eurodollar system, thus establishing the rules of the game for players in this market estimated between 5,000 and 20,000 billion.

A Solution Backed by Industry Heavyweights

The M^0 protocol is the result of work by a seasoned team in the stablecoin domain, benefiting from the strong financial support of Pantera Capital. Among its members are former collaborators of MakerDAO and Circle, two pillars of the stablecoin universe.

The stablecoins created via M^0 will be backed by U.S. Treasury bills, one of the world’s safest assets. They will thus combine the power of the blockchain with the security of U.S. government obligations. The M^0 protocol could become the standard for stablecoins of the future.

Its launch is scheduled for the second half of 2024. It will primarily target crypto-friendly institutions. In the long run, M^0 has the potential to emerge as the reference infrastructure for fintechs for the issuance of stablecoins. The M^0 crypto dollars thus represent the future of dollar-backed stable currencies.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.


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