Create a Stablecoin- With Winning Development Methodologies!

Create a Stablecoin

The recent pandemic has made a huge revolution in the crypto ecosystem. Many new cryptocurrencies have been created and reached more popularity among people. You might have a query regarding cryptocurrency’s popularity. The reason is that cryptocurrencies are more secure and immutable. As all cryptocurrencies are created in the blockchain, data cannot be altered, hacked, or changed. Thus, greater trust has been built among people across the globe.

While speaking of cryptocurrencies, can be classified into two types: crypto coins and crypto tokens. These two terms will confuse people if you’re not familiar with the crypto industry. Generally, crypto coins are the native currencies of a blockchain whereas crypto tokens are created with the token standards of an existing blockchain. For instance, Ether is the crypto coin of the Ethereum blockchain and all other cryptocurrencies of Ethereum are their crypto tokens.

The other factor that entered the crypto industry is a stablecoin. It emerged into the market to make cross-border payments. So, stablecoin creation has become one of the prominent types of cryptocurrencies in the crypto space.

In this article, we shall discuss stablecoin development, how to create a stablecoin, how to pick a stablecoin development company, etc.

Now, let us initiate this article with…

What is Stablecoin?

Stablecoin is the most popular form of cryptocurrency in the crypto space. A stablecoin is a digital currency that is created by pegging a fiat currency. Generally, stablecoins are regulated and non-volatile. They are more settled than other cryptographic forms because of their qualities and values. Currently, 200+ stablecoins are prevailing in the crypto industry.

Primarily, stablecoins are highly secured at a 1:1 ratio with the correspondingly pegged fiat currencies like the US dollar, Euro, etc. Stablecoins also offer various benefits like transparency, immutability, faster transactions, security, privacy, etc. Generally, stablecoins can be developed in four different types:

• Fiat-backed stablecoins
• Asset-backed stablecoins
• Crypto-backed stablecoins
• Algorithmic stablecoins

There are multiple stablecoins available in the crypto ecosystem. But, some of the well-known ones are listed below.

Top Stablecoins in the Crypto Market

There are numerous stablecoins created every day. Here, I shall list some of the popular stablecoins in the crypto space.

• USD coin(USDC)
• Tether(USDT)
• True USD(TUSD)
• Binance USD(BUSD)
• Paxos standard(PAX)
• Origin dollar(OUSD)

These are some of the well-known stablecoins in the crypto ecosystem. Many people have started creating their own stablecoins on seeing the above-mentioned stablecoins. Additionally, stablecoins are created for leveraging many real-world applications. Those applications are listed below.

Use-cases of Stablecoin Creation

Creating a stablecoin possesses various use cases as follows:

• Trading
• Safely hold asset
• Settlement
• Lending
• Making payments
• Remittance
• Payroll
• Alternative banking
• Escrow system
• Powering decentralized apps

You can create your own stablecoin and utilize it in any of the fields mentioned above. Stablecoin can yield more profits for your business. So, stablecoin creation has been preferred by many entrepreneurs as it is one of the high-revenue generating ideas.

Why Should Startups Prefer to Create a Stablecoin?

There are certain reasons behind creating stablecoins in the financial sectors. They are as follows.

Easy Way to Convert Fiat to Cryptocurrency

To participate in any crypto-related activities, you should convert fiat currencies into cryptocurrencies. Instead of that, you can create a stablecoin that has a corresponding value to that of the fiat currency. For instance, if a dollar is converted into crypto, then Tether can be bought.

The Building Block of DeFi

All the DeFi platforms are dependent on stablecoins in different ways. For instance, Curve is one of the great DeFi platforms that have a total locked value of $20 billion. It primarily stays as a marketplace for trading a wide variety of stablecoins with minimal fees. If a trader swaps their stablecoins with Curve, then they’ll receive a portion of the trading fee and it helps in increasing liquidity.

Some other DeFi platforms like Compound and Aave allow users as borrowers to use stablecoins. To be simple, loans cannot be bought for highly volatile assets like Bitcoin. In the case of stablecoins, there will be no more fluctuation in price, so the borrower can easily lend the money back.

Little to no Volatility

The volatile nature of cryptocurrencies differs for different cryptocurrencies. Let us consider bitcoin, its value has risen to the sky during early 2021. It reached $64,000 and then fell back to the most minimal value of relatively $16,500. Here, notice the fluctuation of the value and the situation of the investors and traders.

There emerged the golden opportunity i.e. stablecoin development. As its value is backed by fiat currencies, it will not fluctuate more as compared to other cryptocurrencies. Thus, it reached the utmost popularity than the other well-known cryptos.

Global and Quick Payment

Popular financial institutions like JP Morgan and Wells Fargo have found stablecoins as the ideal payment solution globally. Cross-border transactions with other cryptocurrencies might take a little time to make payments. But that is not the case in stablecoins, any transaction can be done in a more efficient, faster, and cost-effective form using stablecoins.

Security

One of the crucial benefits of stablecoin is the higher-end security they offer. You can maintain the security of a stablecoin by storing it in a virtual wallet. In that regard, you can buy, sell, and hold your stablecoins in a secure way.

No Intermediaries

For developing a stablecoin, no intermediaries or central authorities are involved. There are no regulatory measures or any other rules for creating a stablecoin. So, you can develop your stablecoin independently without any hassle.

Decentralization

Stablecoin transactions are not controlled or maintained by any of the central authorities. So, the admiring feature here is decentralization. There is no possibility of any malicious activities in stablecoin transactions. You can make your stablecoin transactions in a decentralized manner.

Enhanced Privacy

With the above-mentioned perks, you will be offered full privacy as all the details of your stablecoin will be held and maintained only on your own. Stablecoin doesn’t have an association with anybody else and, therefore offers higher-end privacy for the stablecoin creators.

On considering these reasons, many cryptopreneurs are choosing stablecoins as their investment tool. Now, you might be interested to know the development process of a stablecoin. Here are the following.

How to Create a Stablecoin?

Basically, stablecoins can be created in two different methods. One is developing on your own and the other is using the stablecoin development company. Let me illustrate those methods in detail.

Developing on your own

Creating a stablecoin on your own is a very arduous task to execute. It can be done with open-source code that is available on the internet. An Open-source code is freely available code with all the necessary parameters for creating a stablecoin. However, features cannot be easily customized with open-source codes. Besides, you should be technically an expert in creating your own stablecoin.

Here, security ultimately lies in your hands because open-source codes have certain bugs that should be fixed. So, the success rate of developing a stablecoin with open-source codes is very low.

Using a Stablecoin Development Company

This is the most ideal method that you can follow to create a stablecoin effectively. A stablecoin development company will have numerous years of experience in creating stablecoins. They’ll gather all your requirements and develop your stablecoin accordingly.

No bugs or errors will be there as they are multi-time tested. Security will definitely be high as it is created by a professional or a company. You can create a cost-effective and unique stablecoin by going with a reputed service provider. So, you can approach a reputed stablecoin development company in the crypto space for effective results.

Cost to Create a Stablecoin

To be precise, we can’t predict the exact development cost of a stablecoin. The reason is that various factors act behind fixing the cost of creating a stablecoin. Those factors might include:

• Token’s complexity
• Features of a token
• Token design
• Total supply of tokens
• Development team size (members)

Based on these factors, the cost of developing a stablecoin might change. But, we can give you an approximate cost to create a stablecoin. The development cost of a stablecoin might range from $5.5k. This range will alter based on your business requirements and the customizations you make in the stablecoin creation.

Final Words

All the above-discussed are the details about stablecoin creation. As said earlier many new entrepreneurs are interested in creating stablecoins for initiating their business. Not only the creation, but you can also easily trade your stablecoins in all crypto marketplaces. So, you can create a stablecoin to reap a great profit. To develop your own stablecoin, you can hire a team of well-seasoned developers from a reputed stablecoin development company in the crypto space. They’ll guide you from stablecoin creation to issuance. Hence, analyze and pick an experienced stablecoin development company in the crypto verse and initiate your successful crypto business!