Origin, an Ethereum-based marketplace for services like ridesharing and short-term rentals, has integrated TrueUSD into its platform. TrustToken created TrueUSD, which ranks second by trading volume a
Origin, an Ethereum-based marketplace for services like ridesharing and short-term rentals, has integrated TrueUSD into its platform. TrustToken created TrueUSD, which ranks second by trading volume among stablecoins, behind only Tether.
The addition addresses a core problem for decentralized platforms: cryptocurrency prices shift between transactions. A user deposits $50 for a weekend of rides and finds $35 remaining after a price drop. Commerce stops working when buyers and sellers can't trust that their money will hold its value.
Origin proposes a decentralized alternative to centralized services that charge 30% cuts. Airbnb, Lyft, and similar platforms extract enormous fees from transactions. A blockchain-based system could operate much cheaper. The problem is that participants won't use it if their currency changes value between the moment they pay and when service arrives.
In announcing the addition, Origin explained the stakes: "There are solvable problems standing between us and a future of truly peer-to-peer commerce. One of these problems, cryptocurrency price volatility, has a significant negative effect on listings on the Origin DApp, but we are optimistic that stablecoins will mitigate a lot of the risk inherent to these transactions."
Tether, the largest stablecoin, hit a snag in recent weeks. The token lost its peg to the dollar but recovered within days. The episode sparked concern among investors who question whether Tether has the cash reserves it claims to back its tokens. Some companies have begun shifting funds to other stablecoins.
Origin isn't betting everything on TrueUSD. The platform intends to support all ERC20-standard stablecoins and has announced backing for USDCoin, created together by Circle and Coinbase.
Multiple stablecoin options reduce risk. If one fails, users can switch to another. The failure of a single currency doesn't destroy the entire system.
The risk becomes clear in transactions that span time. Someone books a Hawaiian house in January for an October vacation, paying in bitcoin. By October, that bitcoin costs more than double what dollars would. One party captures huge gains. The other absorbs massive losses. Neither wanted that.
Stablecoins fix this by anchoring value to the dollar. Users deposit $50 in tokens, spend $50 in tokens. Sellers know their compensation won't vanish overnight. Transactions become sales rather than speculation.
Origin plans to finish beta testing before year's end.
