Inflation-Linked Stablecoin Launched in U.S.

A group of seasoned U.S. traders introduced USDi, an innovative stablecoin whose value is pegged to inflation and calculated based on the Consumer Price Index (CPI).

According to Bloomberg, a team of experienced American traders specializing in derivatives and currency markets launched the new USDi stablecoin.

Unlike traditional stable assets like USDT or USDC, USDi isn’t strictly pegged to the U.S. dollar. Instead, its value adjusts according to official inflation indicators (CPI), making it a digital counterpart of Treasury Inflation-Protected Securities (TIPS).

The asset is developed by a team led by Michael Ashton, a recognized expert in inflation derivatives. He’s joined by Andrew Fately, a trader with 40 years of experience in the FX markets, and Roger Ramia, a seasoned IT director and blockchain specialist.

Ashton notes that USDi is a digital asset designed to preserve purchasing power amid inflation. The token is currently priced at $1.00863, reflecting accumulated inflation since its launch.

The stablecoin is backed by the USDi Coin Fund, managed by Enduring Investments. The fund’s volatility is around 2% annually, significantly lower than  the stock market. Its portfolio includes: 

• U.S. Treasury bonds;
• TIPS;
• currency and commodity futures;
• fiat reserves.

The functioning mechanism of USDi includes:

• regular value adjustments based on official CPI data;
• use of TIPS yield for more frequent revaluations between CPI releases;
• reserve management via a fund that controls token issuance and redemption based on inflation levels.

At launch, USDi will be available only to accredited investors, but the team doesn’t rule out expanding access in the future.

The launch of USDi comes amid growing business interest in stable assets. In 2024, stablecoin transaction volumes reached $15.6 trillion.