Polkadot launches dotUSD stablecoin

Polkadot has launched its own stablecoin. dotUSD went live on the Polkadot mainnet on 8 October 2026 after DOT holders approved it through OpenGov, the network's on-chain governance system. Unlike most dollar tokens, dotUSD has no issuing company behind it: its rules, parameters and treasury are controlled by token holders.

The launch gives the Polkadot ecosystem a native dollar unit that applications can use for payments, trading and lending without relying only on tokens issued elsewhere.

How dotUSD was approved

The stablecoin was authorised by OpenGov Referendum 1944. According to published results, roughly 98.5 percent of the votes cast supported the proposal. The referendum also approved funding from the Polkadot treasury to support early minting and an initial DOT-dotUSD liquidity pool, so that the new token can be traded from day one.

Because control sits with DOT holders, any fees or treasury flows linked to dotUSD are also tied to that holder-governed structure rather than to a private issuer.

Phase one: backed one-for-one by USDT

dotUSD is starting with a deliberately simple design called a peg stability module. Users can mint one dotUSD by depositing one USDT, and can redeem dotUSD for one dollar's worth of USDT. A supply cap limits how much can be created during this first stage.

This approach means the first version does not need price oracles or liquidation rules. It also means that, for now, dotUSD's stability depends on the USDT held in reserve. Users can hold dotUSD without holding DOT in the same wallet.

Phase two: DOT as collateral

A later phase is planned to let users lock DOT as collateral to mint dotUSD. That stage would add price oracles, vaults, liquidation rules, a stability pool and redemption features, and borrowers would be able to choose their own interest rates. The design is reported to be based on the model used by Liquity v2.

Collateral-backed stablecoins of this kind are often described as decentralised, because they do not depend on a single company holding bank deposits. They do, however, carry different risks, such as sudden drops in the value of the collateral.

How it compares with other stablecoins

Most dollar stablecoins in use today are issued by a company that holds cash and short-term government debt in reserve and promises to redeem tokens one-for-one. dotUSD takes a different route. In its first phase it relies on USDT, but the plan is to move towards a model in which the collateral is locked on-chain and the rules are set by token-holder votes. This makes the system more transparent, but it also puts more responsibility on governance: decisions about caps, fees and collateral ratios are made by the community rather than by a regulated issuer.

Why networks want their own stablecoin

Stablecoins have become the main way value moves on blockchains. A native stablecoin can keep fees and liquidity inside a network's own ecosystem and gives developers a dollar unit governed by the same community that runs the chain. Polkadot joins a broader trend of blockchains and communities launching dollar tokens of their own.

What to watch next

Key questions for the coming months are how quickly the supply cap is raised, how much liquidity builds up around the DOT-dotUSD pool, and when the community votes on the DOT-collateral phase. Regulators are also paying closer attention to stablecoin design, which may shape how widely tokens like dotUSD can be used in regulated payment services.

What it means for ODIX Pay users

New stablecoins keep launching, but USDT and USDC remain the most widely used dollar tokens. If you are asking what is a stablecoin, it is a digital token built to keep a steady value, usually one US dollar. In the ODIX Pay app you can buy crypto with a credit card or debit card, choosing the dollar stablecoins USDT or USDC. Availability depends on your country, and every fee is shown before you confirm. See how to buy USDT and USDC with your card.