On March 27, Universal Market Access (UMA) published a blog post to announce the release of USStocks, a new token which can be acquired using stablecoin DAI.

Per the post, USStocks was described as “an ERC20 token representing synthetic ownership of an index of the 500 largest exchange-listed US stocks”. On that note, the token provides access to US Stock Market for all crypto-owners.

The launch was facilitated by UMA’s partnership with Decentralized Autonomous Organization (DAO) MakerDAO. With this support, users can now buy ERC20 token on DDEX using MakerDao’s USD-pegged stablecoin DAI.

Regarding the mechanism of the new token, the post explained that every USStocks token represents $1 x stock index level. They will calculate the index level based on the 500 largest firms listed on the NYSE and NASDAQ stock exchanges.

USStocks will be created when liquidity providers deposit DAI into a UMA smart contract. Then providers will add additional DAI and enforce a total collateralization ratio of 108.5% along with the rise of the stock’s value.

Speaking of the news, Rune Christensen, CEO, and co-founder of MakerDAO said:

“USStocks is an exciting example of how decentralized finance can unlock economic opportunities for people regardless of geography or income level.”

Token-holders can freely trade USStocks and then exchange them back to DAI on May 15th, the initial expiry date.

Recently, MakerDAO has successfully solved the initial issues of DAI and brought the exchange rate down to below 1$. Meanwhile, stablecoins, mainly pegged to USD, are increasingly employed across industries and use cases, such as Gunbroker.com using US-tied stablecoin as a payment option, as The Crypto Sight reported.