Historical reference — The original USDJ/CDP system has been discontinued
This article describes the original USDJ/CDP system, which was shut down on November 17, 2025. The mechanisms and procedures described below are retained for historical reference and should not be treated as current operating instructions.
For updated fund-handling arrangements and exchange options, please refer to Updates on Handling of Funds Not Timely Returned Following USDJ System Shutdown.
USDJ represents a price-predictable, low-volatility unit of account. USDJ can facilitate a wide range of financial activities that have previously been hampered by market speculation and instability.
A decentralized digital economy needs stability in order to function. The USDJ stablecoin represents a fundamentally new solution to this problem making it suitable for a wide range of financial activities.
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Hedging
During periods of high market instability USDJ offers a safe harbor to store value without having to exit the crypto ecosystem. Large holders of cryptocurrencies, such as hedge funds, foundations, or companies that have recently held a token generating event, may wish to convert their assets into a currency that is insulated from volatility.
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Decentralized exchanges
Decentralized exchanges are frequently unable to provide fiat off-ramps. USDJ allows its users to trade their assets for a low volatility currency that tracks the value of the USD.
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Exchange pairs
Crypto-to-crypto trading can be a complicated proposition. It is difficult to track earnings when both sides of a trading pair are rising and falling in value. Creating low-volatility pairings with USDJ allows for greater price predictability.
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Financial markets
USDJ can also be useful as stable and reliable collateral for use in custom derivative smart contracts, or when creating leverage.
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Merchant receipts, cross-border transactions and remittances
Foreign exchange volatility mitigation and lack of intermediaries means the transaction costs of international trade can be significantly reduced by using USDJ.
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Prediction markets and gambling
Long term betting becomes infeasible if users also have to gamble on the future price of the asset they are wagering. A cryptocurrency with price stability like USDJ can be the natural choice for prediction markets or gambling applications.