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Swiss Company UGPay Group AG Launches A New Generation Backed Stablecoin

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The backed stablecoin under ticker USDU by a Swiss company UGPay Group AG allows executing fast and affordable transfers with minimum transactional costs. The USDU stablecoin is backed by deposits in a different stablecoin, USDC. A Swiss financial company GTI NET AG with an asset management license acts as a guarantor for tokens liquidity and security of the deposit. The stablecoin USDU operates on the CryptoUnit blockchain that was launched on the 2nd February 2021 based on the EOS programming code. One of its key advantages is the absence of transaction fees. Apart from the stablecoin, on the Cryptounit blockchain were issued a security token WCRU and a utility token UNTB. Previous generation stablecoins USDT is the most popular stablecoin in the crypto world with

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The backed stablecoin under ticker USDU by a Swiss company UGPay Group AG allows executing fast and affordable transfers with minimum transactional costs. The USDU stablecoin is backed by deposits in a different stablecoin, USDC. A Swiss financial company GTI NET AG with an asset management license acts as a guarantor for tokens liquidity and security of the deposit.

The stablecoin USDU operates on the CryptoUnit blockchain that was launched on the 2nd February 2021 based on the EOS programming code. One of its key advantages is the absence of transaction fees. Apart from the stablecoin, on the Cryptounit blockchain were issued a security token WCRU and a utility token UNTB.

Previous generation stablecoins

USDT is the most popular stablecoin in the crypto world with more than 80% stablecoin market share. It gained mass popularity among investors and traders thanks to its usability and high liquidity. The majority of cryptocurrency exchanges support USDT that is used in trading as an analogue to the US dollar. But, in the last year, its convenience as a stable currency of the crypto market fizzled out due to the growth in transactional fees in the network.

Currently, it costs $20-$30 to execute a transaction with a USDT stablecoin, whether it is ERC-20 tokens on the Ethereum blockchain or coins on the Omni network on the Bitcoin blockchain. The fee is not affected by the amount of the transfer. It will still cost $20-$30 to transfer even $100 in USDT.

The growth in transaction costs is caused by several factors. First of all, the growth of bitcoin value led to the growth in transaction costs on its blockchain. Secondly, the problem of high transaction fees also affected all tokens issued on the Ethereum network, including USDT – the rocketing surge of interest in the DeFi projects caused a high load on the Ethereum blockchain. The developers of the Ethereum network are actively seeking solutions to this issue but so far all initiatives are at the discussing stage.

USDT stabelcoins also work on the TRON blockchain. Many users opt for this way of using a coin but there is a catch. Upon using USDT stablecoins that were issued on TRON there is a hard rule – the transaction fee is charged in TRX tokens. It means that USDT users must ensure that there are enough funds in TRX. Otherwise, the transaction will not be successful. While the transaction fee, in this case, costs a few dollars, it is hard to purchase TRX coins for such a small sum, as the minimum purchase of TRX is $50. This makes transacting with USDT on the TRON blockchain not as convenient and favourable as users would wish.

The second most popular stablecoin is backed by bank deposits stablecoin USDC that was launched in 2018 by the organization Centre Consortium, among members of which there is the american exchange CoinBase. But the issue with high transaction fees affected USDC as well. The transaction fee for a transfer of any amount is $14.

A new generation stablecoin

While the transaction fees of above-mentioned coins are growing, users are looking for alternatives to familiar stablecoins that would be consistent with stablecoin’s initial idea – cheap and fast transfers without high fees.

“We believe that our decision to launch a stablecoin on the Cryptounit blockchain was just on time. The users were seeking a solid alternative to widely used stablecoins. The demand in our coin was supported also by the fact that all USDU are backed up 1:1 with USDC, the emitent of which regularly passes audit and works under the US jurisdiction”, shared the UGPay Group AG representatives.

Currently one million stablecoins USDU is in circulation. The value of issued coins is equal to one million US dollar. The tokens are available on the Estonian cryptocurrency exchange Unitex.one.

After the distribution of the first batch of stablecoins, the company has planned a new emission of USDU that will also be backed by stablecoins USDC.

The UGPay Group AG is a company registered in Zug, Switzerland, focused on managing assets of private, institutional and corporate clients. The company invests in 20 industry sectors, including precious metals mining, synthetic diamonds manufacturing, construction, innovative transport, telecom, IT, culture and science, real estate, media, and cryptocurrencies and other assets.

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