A Game-Changer in the Digital Currency Ecosystem

USD1 is a digital currency that is pegged 1:1 to the U.S. dollar, positioning itself as a major player in the growing world of stablecoins. Currently, it has $12 billion in circulation and is backed by over $15 billion in reserves. This makes it the third-largest USD-pegged stablecoin by market capitalization and places it within the top 20 digital assets globally.

Market Position

Market Capitalization: USD1 is already among the top 20 digital assets globally, establishing its presence as one of the most influential stablecoins in the cryptocurrency market.

Third-Largest USD-Pegged Stablecoin: With its substantial backing and market cap, USD1 has secured the position as the third-largest USD-backed stablecoin – a testament to its strength and market demand.

Robust Asset Backing

$12 Billion in Circulation: USD1’s circulating supply of $12 billion demonstrates its growing adoption and acceptance in the digital currency ecosystem.

$15 Billion in Reserves: The stablecoin is backed by reserves exceeding $15 billion, offering added security and confidence to users and investors.

Dual Blockchain Support

Stellar Blockchain: USD1 leverages the Stellar blockchain, known for its speed and low transaction fees, making it an attractive option for users seeking efficient, low-cost cross-border transactions.

ERC-20 Compatibility: In addition to Stellar, USD1 is also supported on the Ethereum blockchain (ERC-20). This compatibility ensures that it can integrate seamlessly with a wide range of decentralized applications (dApps) and smart contracts, further extending its usability and reach.

Global Usability

Cross-Border Efficiency: With its dual blockchain support, USD1 offers users a powerful and versatile tool for making fast, secure, and cost-effective digital transactions on a global scale. Whether it’s for international remittances or decentralized finance (DeFi) applications, Kinesis native stablecoin is positioned to meet the needs of global users.

Institutional and Retail Adoption: The combination of Stellar’s efficiency and ERC-20’s broad dApp integration ensures that USD1 can cater to both institutional investors and retail users seeking a stable digital asset with high utility across various blockchain ecosystems.

Attestations: Ensuring Trust and Transparency

As part of Kinesis commitment to providing secure and reliable digital assets, we implement monthly independent attestations to verify the backing of USD1. These attestations ensure that it is fully supported by a corresponding amount of U.S. dollars, maintaining trust and accountability for all users.

Key Elements of The Attestation Process:

Monthly Independent Attestations

Third-Party Verification: Each month, high-level independent law firms will conduct attestations to verify that the quantity of U.S. dollars backing the USD1 coins in circulation matches the stated amount. 

Multiple Audits for Enhanced Accuracy: To ensure reliability, these attestations will be carried out by several different third-party firms, offering multiple layers of oversight.

Governance Structures for Over-Capitalisation

Over-Capitalisation Strategy: Kinesis maintains governance structures that ensure the asset reserves backing USD1 exceed the value of the coins in circulation. This over-capitalisation provides an added level of protection against market volatility, reinforcing its stability and trustworthiness.

Publicly Accessible Reports

Transparency: As with all Kinesis digital assets, the reports generated by independent third-party firms will be made publicly available. Users can easily access these attestations to verify the backing of USD1.

First Attestation Available: The initial attestation can be viewed directly from the Kinesis platform for transparency.

Immutable Blockchain Records

Live Tracking: While the attestations verify the backing of USD1, Kinesis also maintains public blockchains that provide an immutable, real-time record of all USD1 coins in circulation. This digital ledger ensures full traceability and guarantees that no discrepancies occur between the attestations and actual circulating coins.

Blockchain Explorers: Users are encouraged to cross-reference the figures from the attestations with the real-time data on the blockchain explorers to confirm the accuracy of the USD1 supply.

Why This Matters

The combination of independent third-party audits, over-capitalisation, and immutable blockchain records provides users with a transparent, secure, and trustworthy digital asset. These measures ensure that USD1 remains fully backed, offering peace of mind for both retail and institutional investors. By maintaining public visibility into every aspect of the coin’s reserve and circulation, Kinesis upholds the highest standards of accountability and transparency in the stablecoin market.

Key benefits of USD1

USD1 also brings potential advantages to financial transactions by:

The stability of USD1 is maintained through its 1:1 peg to the U.S. dollar, supported by reserves held by the issuer to ensure the stablecoin’s value matches or exceeds the circulating supply. However, it’s important to note that USD1 operates under strict custodial arrangements, and any claim against the stablecoin is a debt claim against Kinesis. Users do not have direct access to the reserve assets.

Key Features of USD1

Advantages of USD1

Transferable

USD1 is a fungible digital asset, making it easy and efficient for transactions. Its versatility allows it to be used in a wide range of applications.

Redeemable

USD1 is backed by high-quality reserves such as cash and cash equivalents. Holders can exchange their USD1 for an equivalent amount of U.S. dollars, subject to certain terms and conditions. This provides assurance that the stablecoin is fully backed and trustworthy, maintaining its 1:1 value ratio.

Programmable

USD1 supports programmability, enabling users to create smart contracts, escrow services, and insurance solutions without relying on intermediaries. This flexibility empowers users with greater control over their transactions while reducing costs and increasing speed and accuracy.

Low Fees

USD1 benefits from low transaction fees. Blockchain-based transactions generally have significantly lower costs compared to traditional financial systems, making it an affordable option for users.

Operates on Decentralized Networks

USD1 utilizes blockchain technology, operating across decentralized networks with multiple nodes. This architecture enhances transparency, security, and resilience, as control of the network is not centralized in a single entity.

Protected from Custodian’s Bankruptcy

The fiat reserves backing Kinesis’ stablecoin are held by Currency One Pty Ltd in a segregated account, separate from the custodian’s operational funds. In the unlikely event of the custodian’s bankruptcy, these reserves remain protected and distinct from other assets, ensuring the stability and security of USD1.

Potential Use Cases

USD1, like other stablecoins, has diverse potential applications across both the financial and tech sectors due to its stable value and digital nature. These applications are facilitated by third-party service providers, not Kinesis Global Pty Ltd. Some key examples include:

Potential Partnership Areas

Strategic partnerships and integrations are crucial for the growth and wider adoption of the USD1 stablecoin. Collaborations with various platforms can broaden its use and increase accessibility. Key potential partnership areas include:

Looking Ahead: USD1 and the Future of Stablecoins

USD1 is just the beginning for Currency One Pty Ltd, which plans to expand its suite of fiat-backed stablecoins in 2025. Following USD1’s success, additional coins like GBP1, EUR1, AUD1, and CAD1 are slated to launch, offering more options for users seeking stable digital assets.

A full, official launch of USD1 is planned for 2025, featuring a more advanced attestation process and groundbreaking security measures, including an industry-first All-Risk Surety insurance wrap. These innovations aim to provide users with unparalleled peace of mind and solidify USD1’s position as a leader in the stablecoin market.

Beyond being just a stablecoin, USD1 is also set to integrate advanced payment capabilities, allowing for seamless transactions not only in U.S. dollars but also in precious metals like gold (KAU) and silver (KAG). This will further enhance its appeal in the digital and real-world asset markets.

Currency One Stablecoin Suite: Revolutionizing Global Transactions

The Currency One Stablecoin Suite is poised to transform the digital currency landscape by making it easier for individuals and businesses to access a broad array of fiat-backed stablecoins. This suite is designed to streamline global transactions, offering users a seamless and efficient way to move between different currencies.

Global Accessibility

Cross-border Transactions: Users can engage with a variety of fiat-backed stablecoins, allowing for simple and efficient international payments.

Wide Range of Stablecoins: The suite supports a variety of fiat currencies (USD, EUR, GBP, etc.), providing users with greater flexibility.

Competitive Foreign Exchange (FX) Conversions

Low-Cost Conversions: Currency One offers low-cost foreign exchange services for major global currencies, reducing the financial burden on cross-border transactions.

Better Market Position: By lowering conversion fees, Currency One aims to become a strong player in the global remittance market, making it more attractive for individuals and businesses seeking cost-effective solutions.

K-Pay Integration

Seamless Payments: Stablecoins from the Currency One suite will be integrated into K-Pay, Kinesis’ payment platform, enabling users to make payments directly with digital currencies.

Support for Precious Metals: In addition to stablecoins, K-Pay will allow users to make payments with gold (KAU) and silver (KAG), further enhancing the platform’s versatility.

Merchant Payments: The platform will also support merchant payments, streamlining the use of digital currencies in everyday transactions and driving broader adoption.

Efficient Cross-Border Remittances

Speed and Affordability: Currency One’s stablecoins, integrated with the K-Pay platform, will enable faster and cheaper cross-border transfers, benefiting both individuals and businesses who rely on international remittance services.