A new stablecoin aims to serve as an inflation-proof form of cash.

USDi is a dollar-tracking coin whose value is determined by the increase in the consumer price index (CPI) since December of last year, Bloomberg reported Tuesday (April 14).

A new stablecoin aims to serve as an inflation-proof form of cash.

USDi is a dollar-tracking coin whose value will be determined by the increase in the consumer price index (CPI) since December of last year, Bloomberg reported Tuesday (April 15).

Inflation protection in the U.S. stock markets has been on offer since 1997 in the form of Treasury inflation-protected securities (TIPS), or government bonds whose principal is indexed to the CPI. However, because they are bonds, TIPS can suffer losses when interest rates climb, the report said.

Michael Ashton, an expert in inflation-protected investing, said USDi is comparable to TIPS principal or — in theory — to an inflation-protected savings account.

“The riskless asset doesn’t actually currently exist, and that’s inflation-linked cash,” Ashton said. “Holding cash is an option on future opportunities, and the cost of that option is inflation. If you create inflation-linked cash, that’s the end of the risk line.”

USDi Partners said the stablecoin will have as much purchasing power as the dollar did in December 2024. The company will mint and burn the coin at its stated value, which will be a function of daily CPI calculations, according to the report.

Stablecoins have the potential to reconfigure the way people and businesses think about digital payments. Built on decentralized blockchain infrastructure, stablecoins can offer fast, low-cost and borderless transactions without the friction of traditional intermediaries. For a growing base of global users, this isn’t theoretical but is already transforming how money is stored and moved.

“But despite the growing and massive throughput of stablecoins, their mainstream adoption remains elusive,” PYMNTS reported this week. “This is particularly true in regions with established banking systems.”

Stablecoins excel in theory and even in back-end finance, but most end-users don’t deal with money in the abstract. They engage with it through apps, devices and point-of-sale terminals. For stablecoins to arrive at their tipping point moment, the consumer and merchant experience must meet or exceed the simplicity and ubiquity of systems such as Venmo, Stripe or credit card terminals.

This means overcoming three interconnected challenges: merchant acceptance; onboarding and offboarding; and user interface and stablecoin wallet user experience.