Privacy-focused cryptocurrency and payments firm MobileCoin, in collaboration with stablecoin platform Reserve, has launched a new stablecoin dubbed “Electronic Dollars” (eUSD). The stablecoin eUSD is built on the MobileCoin blockchain and backed by a basket of other stablecoins, namely, USDC, USDP and TUSD. Each transaction is said to be encrypted using end-to-end zero-knowledge encryption.
The eUSD will be managed by the MobileCoin Foundation, which will “governors” who are authorized to mint and burn eUSD. The stablecoin’s collateral is held in a popular Ethereum multisig wallet called Safe. New eUSD is only minted after governors confirm an equivalent amount of collateral has been transferred to the Safe wallet. When the eUSD is burned, the governors will send the eUSD to a “burn address” and release the collateral.