Saga Stablecoin Goes Live Backed By Basket of Fiat Currencies

Publié le by Coindesk | Publié le

Saga Monetary Technologies has finally launched its SGA stablecoin, and it's already planning to break away from its pegged basket of currencies.

SGA, the basket-backed stablecoin envisioned last year by the Saga Foundation, is a long-term play tailoring to two very different goals of the crypto market: being a store of value and a free-floating asset all its own, according to Ido Sadeh Man, founder & chairman at the foundation.

SGA's seemingly contradicting ambitions give rise to a complex game plan.

At launch, SGA will be a stablecoin through-and-through.

Its value will rely solely on the "Basket of national currencies" whose collective worth backs up SGA's list price.

Meant to mimic the International Monetary Fund's Special Drawing Rights, a currency-like reserve asset pegged to the dollar, euro, renminbi, pound sterling and yen, this "Basket" will ensure SGA's stable price.

The SGA's website will report the funds held in its reserves through daily attestations.

Over time SGA will become entirely unpegged, he said, and the value of the outstanding tokens will depend on how many are being held.

"There will always be enough money in the reserve to allow the contract to purchase all SGA tokens, although the price of SGA is dependent on the quantity of SGA in circulation at the time," he said.

Man also said that SGA front-loaded its regulatory due-diligence.

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