About USDA
Last updated
Last updated
Presenting the ASEAN USD (USDA), a practical digital stablecoin created through a strong partnership between NewPay and Lao National Digital Technology Group (LADT) and designed to serve the thriving digital transformation of the world’s economy. This innovative stablecoin is fully backed by secure fiat assets. It seamlessly moves on the blockchain akin to other digital currencies and can be minted directly with US dollars and some of the ASEAN countries' fiat currencies, maintaining a 1:1 value peg to the US dollar.
Based in Laos, USDA is poised to extend its reach to encompass service areas in Cambodia, Thailand, Indonesia, and Vietnam. This strategic move aligns with its commitment to offer its benefits and capabilities to a broader audience within the ASEAN community, fostering economic growth and financial inclusion across multiple nations in the region.
With fully backed government support and a growing user base, along with external income generated by NewPay and the adoption of a Web2 & Web3 integrated economic model, LADT aims to attract 3 million USDA users and generate $12 million in revenue over the next year.
Government Endorsement: Government-backed cryptocurrency projects are relatively scarce on a global scale. However, the Lao government, as the rotating ASEAN Chair for 2024, is strategically positioned to actively promote USDA payments, thereby facilitating the digital transformation of ASEAN.
Sustainable Risk-Free Yield: USDA functions as an interest-bearing stablecoin. Staking USDA within the decentralized platform empowers holders to secure risk-free yield from the fluctuating interest rates in the autonomous market (APY 4%-8%).
Convenient Crypto Transactions: USDA can be minted directly with the US dollar & the majority of ASEAN fiat currencies. It also streamlines direct cryptocurrency exchange and trading, effectively incorporating Web3 capabilities.
Eliminating Cross-Border Transaction Barriers: USDA guarantees efficient cross-border transactions, leading to a reduction in transaction expenses and delays in global trade. This cost-effective characteristic enhances USDA's attractiveness and affordability.
Inflation Resistant: As the exchange rate of the Lao Kip (LAK) often experiences significant fluctuations, USDA users can rest assured, thanks to its firm 1:1 value peg to the US Dollar. This peg empowers users to protect the value of their assets effectively.
On-chain Transaction Oversight: LADT will work with third-party blockchain monitoring firms to perform ongoing transaction monitoring and risk evaluations to detect and prevent fraud. Given that USDA operates on the Ethereum blockchain, the complete transaction history on the blockchain is easily accessible to anyone.
100% Reserve Backing: USDA is backed by a reserve of real assets, primarily consisting of US dollar deposits, US treasuries, and cash equivalents. Each USDA token is backed by an equivalent value of these assets, ensuring complete security for token holders.
100% Third-Party Fund Insurance: Banking insurance services extend full coverage to safeguard the entire reserve pool.
100% Transparency: LADT will provide transparency by publishing monthly records about its reserves and the assets backing the USDA tokens.
Regular Audits: LADT collaborates with well-known third-party independent auditing firms to carry out verification procedures per AICPA standards. This is undertaken to guarantee the accurate correspondence of monthly balances between USDA tokens and the US dollar reserve bank accounts by the end of each month. Additionally, the USDA smart contracts undergo audits by reputable blockchain auditing firms in the industry to ensure the integrity of the code and its performance.
LADT (https://www.ladt.co/), also known as Lao National Digital Technology Group, is the issuer of USDA. It’s a collaborative initiative involving the Ministry of Finance, the Ministry of Science and Technology, and Lao NewPay United Technology Co., Ltd. LADT has been granted exclusive rights for stablecoin issuance by the Laos government and central bank. The organization actively participates in legislative initiatives within relevant governmental sectors in Laos.
Backed by the Central Government of Laos, LADT operates under the guidance of the Central Bank and the Ministry of Industry and Trade, playing a vital role in driving Laos' digital transformation. In 2024 Q1, LADT is set to introduce the first-ever ASEAN Stablecoin, USDA.
NewPay (https://www.newpay.la/), Laos' leading third-party payment platform and the carrier of USDA, was established in March 2020. Its primary role is to provide digital service providers with products and service interfaces, facilitating the digitalization of operations for businesses and institutions.
NewPay offers more than 30 lifestyle services to consumers, including government services, QR code purchasing, and utility bill payments. The platform has already served over 100,000 merchants and 1 million consumers. Acting as the national payment tool and financial backbone in Laos, NewPay is driving the rapid transition of the Laotian population to mobile payment methods.
Considering the needs of global users, LADT meticulously selects custodian banks through a rigorous process, prioritizing the safety of the reserve. In adherence to the pertinent laws of the country where the reserve bank is located, comprehensive measures are implemented to supervise and manage the reserve. LADT also suggests appropriate custodian banks based on users' basic information and preferences.
LADT's custodian banks include the following three:
