Polkadot has launched dotUSD, a new dollar-pegged stablecoin on its mainnet, giving the network its own digital currency designed to maintain a value close to $1. The launch was approved through Polkadot’s on-chain OpenGov governance system, which allows DOT holders to take part in important decisions about the network.
Unlike stablecoins issued by private companies, dotUSD is designed to be governed through Polkadot’s community-led system. The first version uses USDT to help maintain its dollar value, while a later phase is expected to allow users to create dotUSD by locking up DOT as collateral.
dotUSD is live on Polkadot.
Today a handful of companies issue and control most of the world’s stablecoins worth more than $250B.
Like banks, they decide who can hold them and who can’t.dotUSD is based on a different premise. It has no issuing company and no single point of control.
The DOT DAO governs it through OpenGov.Polkadot now has a stablecoin that belongs to its network.
— Polkadot (@Polkadot) October 8, 2026
The launch was approved through OpenGov Referendum 1944. The proposal received 98.4% support, backed by around 4.3 million DOT. It also approved a liquidity pool between DOT and dotUSD, along with funding from the Polkadot treasury to support liquidity during the early stages.
dotUSD runs on Polkadot Hub and draws partly on the design of Liquity v2’s BOLD stablecoin. However, the project is being introduced in stages rather than launching with all its planned features at once.
In the first phase, users can exchange USDT for an equal value of dotUSD through a system called the Peg Stability Module. They can also redeem dotUSD for $1 worth of USDT, although an initial limit applies to the amount of dotUSD that can be supplied.
This arrangement offers a relatively simple way to bring the stablecoin into circulation. Users can hold dotUSD without needing to keep DOT in the same account. The first version also does not require price oracles or liquidation rules, which are expected to become important in a later phase.
The bigger plan is to allow users to lock DOT as collateral and create dotUSD against it. Collateral is an asset kept as security when borrowing or creating another asset. Under the planned system, price oracles will help track the value of DOT, while liquidation rules will help manage the risk of falling collateral values. The system is also expected to include a stability pool and redemption features based on the Liquity model. Borrowers will be able to choose interest rates for their positions.
The idea of a Polkadot-native stablecoin is not new. In September 2025, Acala co-founder Bryan Chen proposed pUSD, a stablecoin backed by DOT. The latest launch represents a step towards that broader goal.
The key question now is how well dotUSD maintains its dollar peg and attracts users. Its future development will depend on the rollout of the planned features and the community’s decisions through OpenGov.
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