Wirex, the UK-based digital money platform that allows users to exchange and spend both traditional money and cryptocurrencies, announced today that it has added its first stablecoin, the Dai (DAI) token, to the company’s portfolio.
Dai joins Bitcoin, XRP, Ether, Litecoin, Waves and Wollo as the seventh cryptocurrency available for users to buy, store, convert and spend with their Wirex Visa card.
Stablecoins combine the stability of traditional currency with cryptocurrencies’ ease of circulation, and are set up with a reserve of stable assets that can be used to redeem the tokens (e.g. 1 token = 1 USD). They can also be used for payments, savings or as a tool for investors to hold their crypto.
While there are numerous models of stablecoins, Dai is unique in that it is the first decentralized stablecoin on the Ethereum blockchain. Dai lives completely on the blockchain; its stability is unmediated by any locality, and its solvency does not rely on any trusted counterparties. All Dai are backed by a surplus of collateral that has been escrowed into audited and publicly viewable Ethereum smart contracts.
Wirex co-founder, Pavel Matveev said: “We want to give our customers access to a full array of currencies. Stablecoins are yet another variation of cryptocurrencies and an excellent tool to make international payments at low costs and without volatility.”
Rune Christensen, CEO and co-founder of MakerDAO, said: “Convenient access to stable digital currency is a critical element for growth of the crypto economy. Partnering with Wirex to integrate Dai into their platform creates another way for people to access and use crypto in their daily lives.”