Kusama

Summit

Polkadot

Acala

Read

Polkadot co-founder Gavin Wood unveils plans for the ecosystem’s native decentralized stablecoin on the network. The stablecoin will be collateralized to the protocol’s native token DOT.
On the first day of the <a href="https://web3summit.com/agenda/" target="_blank" rel="noopener noreferrer nofollow">Web3 Summit 2025</a> on July 17, Wood discussed the protocol’s plans to launch a fully decentralized <a href="https://crypto.news/tag/stablecoin/" rel="noopener noreferrer nofollow">stablecoin</a>. The stablecoin, which will be pegged to the project’s native token DOT (<a href="https://crypto.news/price/polkadot/" rel="noopener noreferrer nofollow">DOT</a>), is designed to advance capital efficiency and scalability.
So far, the token has yet to be formally launched on the market. It is still in the early stages, with Wood revealing that a treasury proposal aimed at bootstrapping initial liquidity is currently in the works.
This means that once the proposal gets shared to the community forums, it will need to receive community feedback and a majority vote of approval from DOT token holders before the it can get deployed.
If it gets approved, this will be the first time a stablecoin pegged solely to <a href="https://crypto.news/tag/polkadot/" rel="noopener noreferrer nofollow">Polkadot’s</a> native token DOT gets a formal launch.
<figure class="wp-block-image size-full">
 <img loading="lazy" width="903" height="817" src="https://crypto.news/app/uploads/2025/07/DOTUSDT_2025-07-17_15-32-45.png" alt="Price chart for Polkadot's native token, July 17, 2025 | Source: crypto.news">
 <figcaption>
 Price chart for Polkadot’s native token, July 17, 2025 | Source: <a href="https://crypto.news/price/polkadot/" rel="noopener noreferrer nofollow">crypto.news</a>
 </figcaption>
</figure>
You might also like: <a href="https://crypto.news/chinese-state-owned-firms-tasked-with-studying-stablecoin-launch-feasibility-report/" rel="noopener noreferrer nofollow"> Chinese state-owned firms tasked with studying stablecoin launch feasibility: report </a>
At press time, DOT has gone up by 1.54% in the past 24 hours. It recently reached a peak of $4.26 on July 17. However, it experienced a slight correction and fell a few points back to $4.19 shortly after. In the past week, the token has jumped by 14.7%.
Polkadot’s token market cap has increased slightly by 0.23%, reaching $6.3 billion.
Polkadot’s daily trading volume surged by 30.9% in the past trading day, reaching nearly $500 million. This indicates a recent rise in market activity for the token that is poised to become the sole liquidity holder for the upcoming stablecoin.
Back in 2022, there was already a stablecoin linked to DOT. Ethereum-compatible project Acala <a href="https://medium.com/acalanetwork/acala-launches-polkadots-native-stablecoin-ausd-a-decentralized-multi-collateral-stable-1b2efd029326" target="_blank" rel="noopener noreferrer nofollow">launched</a> the USD-pegged stablecoin aUSD which was designed to become the foundational stablecoin to support the Polkadot and Kusama ecoststems. The token lets users mint aUSD by locking assets such as DOT and LCDOT (Acala’s liquid DOT) as collateral.
To bootstrap growth, Acala launched a $250 million aUSD ecosystem fund to support early-stage projects on Polkadot parachains with a strong aUSD use case.
However later in September 2022, Acala Network <a href="https://medium.com/acalanetwork/acala-launches-polkadots-native-stablecoin-ausd-a-decentralized-multi-collateral-stable-1b2efd029326" target="_blank" rel="noopener noreferrer nofollow">experienced</a> an attack which led to the aUSD stablecoin getting depegged by more than 99% of its value.
Read more: <a href="https://crypto.news/acala-network-releases-the-full-trace-report-on-recent-network-exploit/" rel="noopener noreferrer nofollow"> Acala Network Releases the Full Trace Report on Recent Network Exploit </a>

Web3 Summit: Polkadot plans to launch stablecoin with DOT collateral

crypto.news

Other articles published on Jul 17, 2025

Join our free newsletter for daily crypto updates!