Stably USD Classic: A USD Stablecoin

What is Stably USD Classic

Friends, imagine the US dollar we use every day—it has a fixed value and doesn’t fluctuate wildly like stocks. In the blockchain world, we also need such “stablecoins”; they are like the digital world’s dollars, aiming to keep their value stable. Stably USD Classic, abbreviated as USDSC, is such a stablecoin. Its original goal was to maintain a 1:1 peg with the US dollar, meaning 1 USDSC should equal 1 USD.

It was initially issued by Stably and its underlying USD reserves were managed by Prime Trust. Just like a bank keeps your cash safe, Prime Trust was supposed to safeguard an equivalent amount of USD to ensure every USDSC was backed by real assets. USDSC could circulate on multiple blockchain networks, such as Ethereum, Binance Smart Chain, etc., making it a bridge for digital asset trading and transfers.

However, it’s important to note that, according to the latest information, Stably USD Classic (USDSC) is no longer supported by its issuer, Stably. This is mainly due to its original custodian, Prime Trust, encountering bankruptcy. Stably is currently coordinating with parties involved in the Prime Trust bankruptcy case, hoping to help USDSC holders recover their collateral assets. Therefore, although it was once a USD stablecoin, its current status is very special.

Project Vision and Value Proposition

The original vision of Stably USD Classic, like all fiat-backed stablecoins, was to address the high volatility of the crypto market. Imagine if you wanted to trade or make payments on the blockchain, but the value of your crypto assets changed every minute—it would be very inconvenient. Stablecoins act as a “safe haven,” providing a stable store of value and medium of exchange.

The core value proposition of USDSC lies in its “1:1 USD reserve” and “transparency.” Its design intent was that for every USDSC issued, there would be a real US dollar as collateral, and these reserves would be regularly audited by third parties to ensure transparency. The purpose was to build trust, so users could believe their digital dollars were real and safe.

Unlike some algorithmic stablecoins (which maintain price via complex algorithms), USDSC adopted a “fiat-collateralized” model, which in theory provides more direct value support. Its goal was to connect traditional finance and the blockchain world, providing a stable, regulated digital dollar for global transactions.

Technical Features

Technically, Stably USD Classic is a “centralized fiat-collateralized stablecoin.” Simply put, it doesn’t rely on complex decentralized protocols to maintain stability, but rather on a centralized entity (Stably and its custodian partner Prime Trust) for issuance and management.

Its main technical features include:

• Fiat Collateral Model

  Each USDSC token was claimed to be backed 1:1 by USD assets in a bank account. It’s like depositing money in a bank and getting a certificate of deposit, which represents your deposited funds.

• Multi-chain Support

  USDSC could be issued and circulated on multiple blockchain networks, meaning you could use it across different blockchain ecosystems, increasing its flexibility and usability.

• Transparency Mechanism (Original Design)

  According to its initial design, USDSC would regularly publish proof of reserves and third-party audit reports to show the status of its USD reserves to the public, ensuring transparency. In addition, token issuance and redemption transactions would be recorded on-chain, while off-chain (non-blockchain) transactions and reserve balances would also be periodically broadcast to the public.

It’s important to emphasize that these technical features describe USDSC’s original design and operation. Given its current “no longer supported by the issuer” status, the actual execution and reliability of these mechanisms have been severely impacted.

Tokenomics

The tokenomics design of USDSC is very straightforward: it is a “stablecoin” with the core goal of maintaining a 1:1 value peg to the US dollar. This means its value should not fluctuate wildly like other cryptocurrencies, but strive to remain around 1 USD.

• Token Symbol and Issuance Chains

  The token symbol is USDSC. It was issued on multiple blockchains, including Ethereum, Arbitrum, BNB Chain, Stellar, Tezos, etc.

• Total Supply and Circulation

  According to CoinMarketCap, the total supply of USDSC is about 9 billion, while the current circulating supply is about 461,900. However, these numbers may not fully reflect its current market activity, as the project is no longer supported by the issuer.

• Inflation/Burn Mechanism

  As a fiat-collateralized stablecoin, its issuance and burning are usually tied to USD deposits and withdrawals. When users deposit USD, new USDSC is minted; when users redeem USD, an equivalent amount of USDSC is burned. This mechanism is designed to maintain the 1:1 peg.

• Token Use Cases

  When operating normally, USDSC’s use cases included: as a medium of exchange, store of value, cross-border payments, and providing liquidity in decentralized finance (DeFi) applications, etc.

However, given that USDSC is no longer supported by the issuer and its original custodian Prime Trust has gone bankrupt, its market liquidity is extremely low and trading volume is almost zero. This means its actual function as a stablecoin and value peg are at great risk, and its tokenomics model can no longer operate effectively.

Team, Governance, and Funding

Regarding the team, governance, and funding of Stably USD Classic (USDSC), we need to review its history and focus on its current status:

• Core Issuer

  USDSC was initially issued by Stably. The Stably team has some experience in the stablecoin field, dedicated to providing stablecoin and fiat on/off-ramp infrastructure.

• Custodian

  The USD reserves for USDSC were originally managed by Prime Trust. The custodian’s role is crucial—it is responsible for safeguarding the real assets behind the stablecoin, ensuring the token’s value backing.

• Current Status and Funding Issues

  Unfortunately, Prime Trust announced a suspension of deposits and withdrawals in June 2023, was ordered into receivership in July, and filed for bankruptcy protection (Chapter 11) in August. This event directly led to USDSC no longer being supported by Stably. Stably is currently coordinating with parties involved in the Prime Trust bankruptcy case, aiming to return collateral assets to USDSC holders. This means USDSC itself no longer has an active team for governance or funding support, and its funding status is closely tied to Prime Trust’s bankruptcy liquidation.

• Governance Mechanism

  As a centrally issued fiat-collateralized stablecoin, governance rights for USDSC were mainly concentrated in the hands of the issuer Stably and its custodian partner. However, as the project is no longer supported, its original governance mechanism has failed.

In summary, the team, governance, and funding status of USDSC are currently stagnant and uncertain, and its fate depends on the progress of Prime Trust’s bankruptcy liquidation.

Roadmap

For Stably USD Classic (USDSC), there is currently no active roadmap or future plan. This is because the project is no longer supported by its issuer Stably, and its original custodian Prime Trust has entered bankruptcy proceedings.

After the Prime Trust incident, Stably has relaunched its stablecoin business and introduced a new stablecoin, still named Stably USD (USDS), but with a new custodian partner Bridge and a statutory trust established in Wyoming. This new USDS has its own roadmap, including issuance on more networks, adding payment methods, and providing developer-friendly APIs and SDKs, etc. But please note, this is a different project from Stably USD Classic (USDSC).

Therefore, for USDSC itself, we cannot provide a meaningful roadmap, as it is already a “historical project,” and its main future “event” will be the liquidation and return of its collateral assets.

Common Risk Reminders

Friends, in the blockchain world, risks are everywhere, especially for projects like Stably USD Classic (USDSC) that are in a special state, so we need to be highly vigilant. Here are some major risk points:

• Project No Longer Supported Risk

  This is the core risk of USDSC. The issuer Stably has clearly stated it no longer supports USDSC. This means no team maintenance, no official support, and no active market promotion. It’s like a company announcing it will stop producing and maintaining a product—its future value and usability will be greatly reduced.

• Custodian Bankruptcy Risk

  The USD reserves for USDSC were originally managed by Prime Trust, which has filed for bankruptcy. This leads to uncertainty for USDSC’s collateral assets, and its value peg may not be guaranteed. Although Stably is coordinating asset returns, the process may be lengthy and the outcome uncertain.

• Depegging Risk

  The core of a stablecoin is its 1:1 peg to fiat. Due to the above reasons, USDSC is already facing severe depegging risk—its price may be far below 1 USD and difficult to recover.

• Liquidity Risk

  Currently, USDSC’s market liquidity is extremely low and trading volume is almost zero. This means you may find it very difficult to sell or exchange it for other assets, and even if you can sell, it may be at a price far below its face value.

• Technical and Security Risks

  As the project is no longer supported, its smart contracts may no longer be maintained or audited, and potential security vulnerabilities may not be fixed in time. Although USDSC itself is based on mature blockchain technology, lack of ongoing maintenance increases risk.

• Compliance and Operational Risks

  Compliance is very important for stablecoins. As regulatory environments change, a project that is no longer supported may not meet new compliance requirements, further affecting its value and operability.

• Information Asymmetry Risk

  The latest and most accurate information about USDSC may be difficult to obtain, making it harder for investors to make informed decisions.

Again, the above information is for risk warning only and does not constitute any investment advice. When considering any crypto asset, be sure to conduct thorough personal research and fully understand all potential risks.

Verification Checklist

For a project like Stably USD Classic (USDSC), the focus of the verification checklist is to confirm its current status and historical information.

• Block Explorer Contract Address

  You can find USDSC’s contract addresses on different blockchains via sites like CoinMarketCap or CoinGecko. For example, the contract address on Ethereum is

  0xA4Bdb11dc0a2bEC88d24A3aa1E6Bb17201112eBe
  . Through block explorers (such as Etherscan), you can view token holder distribution, transaction history, etc. But remember, this data reflects on-chain activity and does not mean the project is still actively operating.

• GitHub Activity

  Given that USDSC is no longer supported by the issuer, its related GitHub repositories (if any) are expected to have no active development. This indirectly confirms the project is no longer maintained.

• Official Website/Announcements

  Visit Stably’s official website (stably.io) to find announcements about USDSC’s renaming and the Prime Trust incident. These announcements are key sources for confirming the project’s status.

• Market Data Platforms

  Check USDSC’s real-time price, market cap, trading volume, and liquidity on platforms like CoinMarketCap, CoinGecko, or Binance. You’ll find its trading volume and liquidity are very low, and its price may have already severely depegged.

• Audit Reports (Historical)

  If you can find USDSC’s (or its predecessor USDS’s) reserve audit reports from before Prime Trust’s bankruptcy, you can learn about its historical transparency. But these reports no longer represent the current situation.

Through these verification steps, you can gain a more comprehensive understanding of USDSC’s historical background and the severe challenges it currently faces.

Project Summary

Friends, to summarize our understanding of Stably USD Classic (USDSC): it was once an ambitious USD stablecoin project, aiming to provide a stable value carrier for the blockchain world, with the core concept of 1:1 USD reserves and transparency. It was initially issued by Stably, with Prime Trust as its USD reserve custodian.

However, reality is harsh. Due to the bankruptcy of its original custodian Prime Trust, Stably USD Classic (USDSC) is now “no longer supported by its issuer Stably.” This means that as an active stablecoin project, USDSC has ceased operations. Although Stably is working to help USDSC holders recover their collateral assets, the process is full of uncertainty.

Currently, USDSC’s market liquidity is extremely low, trading volume is almost zero, and its price may have severely deviated from the 1 USD peg. Therefore, it is no longer a reliable stablecoin, and its tokenomics model has failed.

For anyone considering exposure to USDSC, I must emphasize that this is an extremely high-risk project. It no longer has official support, its underlying assets face bankruptcy liquidation uncertainty, and market liquidity is nearly exhausted. This is by no means a suitable investment project, and even as a medium of exchange, it carries huge risks.

Please remember, all the above information is for reference only and does not constitute any investment advice. In the crypto field, independent research (DYOR - Do Your Own Research) is crucial. If you want to know more details, be sure to check relevant announcements and historical materials yourself, and have a clear understanding of all potential risks.