Stablecoins and the Blockchain

Kasu is built on blockchain infrastructure and lending to Credit Originators occurs in stablecoins. Kasu has made the process simple so you do not require an in depth understanding of stablecoins or the blockchain to lend. However, it is important that you understand two essential elements: your loan is advanced and repaid in the stablecoin you select (the Adding funds to your Digital Wallet page explains what that means for you), and your loan is recorded on a permanent record that nobody, including Kasu, can alter (Lending Request Outcomes). The two short explainers below cover what those words mean and why they work in your favour.

What is a stablecoin, and what are the benefits?#

A stablecoin is digital money designed to hold the same value as an ordinary currency. USDC, one of the key stablecoins Kasu uses, is designed to be worth one US dollar at all times. Its issuer, Circle (NYSE: CRCL - https://www.circle.com/), holds US dollars in cash or short-term US government securities for every USDC in circulation, publishes monthly attestations of those reserves by an independent accounting firm, and operates under money-transmission and payments regulation in the United States and Europe. Holders can redeem USDC for dollars from the issuer one for one.

USDC is not a speculative asset and it is not what people usually mean by "crypto". Its value does not rise and fall with the market; the point of it is that it does not move. It is used today by payment companies, banks and large corporates to settle payments and move money between countries because it settles in minutes, at any hour, for a fraction of the cost of the correspondent banking system. That is also why Kasu uses it: your loan and your interest can be advanced, recorded and repaid precisely and quickly, without a bank in the middle of every step.

The one thing to understand is that a stablecoin is only as good as the reserves and the regulation behind it. Kasu accepts only regulated, fully reserved stablecoins. The Risk Warning page sets out the residual risk that a stablecoin ceases to hold its value.

What is the blockchain, and why it helps you#

A blockchain is a shared ledger that many independent computers keep identical copies of. Once an entry is written to it, it cannot be edited or deleted by anyone, and anyone can check it. Kasu uses one to hold the record of every loan and every movement of stablecoin funds.

For you, that means three practical things. Your loan is recorded in your own Digital Wallet as a record that Kasu cannot alter, so your evidence of what you lent, when, and on what terms does not depend on trusting Kasu's own books. Every transaction, from your Lending Request through to each week's interest and each withdrawal, is visible and verifiable, not something you have to take on trust from a statement. And because the ledger runs continuously, funds and interest are recorded on a fixed weekly rhythm without waiting for banking hours or manual processing.

You do not need a technical background to use any of this. If you sign in with an email address, Kasu creates and manages a Digital Wallet for you and the blockchain stays in the background. If you prefer to hold your own wallet, you can connect one (Signing in).