What Does Exodus Holding Sovryn Dollar Mean?

Today, Exodus Movement, the publicly traded company behind one of the world’s most popular crypto wallets, announced that it would begin allocating part of its corporate treasury to the Bitcoin-backed Sovryn Dollar. Like Laszlo’s purchase of two pizzas with BTC back in 2010, this marks the beginning of a huge shift in money, one that will play out over the next decade.  

Exodus wallet is a very special wallet. Last year, at Pizza Day Prague (2022), Sergej Kotliar, CEO of Bitrefill, shocked the Bitcoin community. He revealed that, according to their data, Exodus wallet has grown to become the “largest Bitcoin wallet in the world”. Bigger than Coinbase, bigger than Binace’s Trust Wallet, bigger than Blockchain.com or Crypto.com. And what’s more, unlike Coinbase and Crypto.com, Exodus is self-custodial: Not your keys, not your coins. 

The team behind Exodus has done something remarkable, without hype, without a token—they built a profitable wallet business and they did it non-custodially. Great UI, security, and long-term focus on their mission of financial sovereignty and inclusion allowed them to build a wallet that has introduced millions of casual users to Bitcoin.  

A similar set of values led to the creation of the Sovryn Dollar, which represents a newer but no less significant product. Sovryn Dollar (DLLR) has quickly become, by far, the leading  decentralized Bitcoin-backed stablecoin. Unlike most stablecoins, which are typically backed by fiat currencies like the U.S. dollar, the Sovryn Dollar is backed by Bitcoin and aggregated from other Bitcoin-backed stablecoins, providing it with a unique level of stability and security. Not your keys, not your coins.

For years we have been speaking about Bitcoin as the world's next reserve asset, a kind of digital gold that promises to revolutionize the way we perceive and manage wealth. Yet Bitcoin's high volatility can limit its use in regular transactions and savings. This is where stablecoins, and more specifically Bitcoin-backed stablecoins, come into the picture. They offer the best of both worlds—the stability of fiat currencies and the decentralization, security, and transparency of Bitcoin.

The decision by Exodus to hold the Sovryn Dollar in its treasury is a strong endorsement of Bitcoin and Bitcoin-backed stablecoins. By aligning itself with a stablecoin that is intrinsically tied to Bitcoin, Exodus helps promote the wider acceptance and use of Bitcoin as a backing asset.

Bitcoin’s use case as a reserve asset will be driven by Bitcoin-backed stablecoins. The collateral that backs the Sovryn Dollar will become one of the primary sources of demand for Bitcoin, taking huge swathes of BTC out of the circulating supply, while at the same time increasing demand. 

Until now, stablecoins have been dominated by centralized fiat-backed coins and  “algorithmic” systems with dubious or partial collateral. Their adoption has been driven by speculative token trading on centralized exchanges.

Sovryn Dollar offers a clear alternative: a true decentralized, uncensorable, stablecoin that uses Bitcoin—the most pristine digital asset, as its backing. What is more, by offering this asset via Exodus, the most popular wallet for Bitcoin payments, a new path to adoption is being created. Adoption driven by payments, savings, and decentralized finance, instead of speculative trading and CEXs. 

Finally, a stablecoin is available that ordinary people, around the world, can use for their everyday needs—and do so securely. Finally, a stablecoin that does not place users at the mercy of opaque corporations and regulators. Finally, a stablecoin that empowers individual sovereignty. 

Part of what drove Exodus Movement to look for an alternative to dollars in a bank account was the recent unbanking of the crypto industry. Bank collapses, regulatory pressure, and Operation Chokepoint 2.0 sent a clear message. If a company wants to be able to protect its access to funds and even its ability to operate—it needs at least part of its treasury to be uncensorable. We can expect Exodus to be just the first of many. 

With decentralized stablecoins, users—individuals, companies, institutions and even countries—become their own banks, holding and managing their assets themselves. Exodus realizes this and plans to make the Sovryn Dollar available to all their users, while helping to educate them on its benefits.

The integration of Sovryn Dollar (DLLR) into Exodus has profound implications for Sovryn and its overarching goals.

1. Broadened Exposure and Uptake: With its incorporation into Exodus, Sovryn and DLLR will be exposed to a larger audience, potentially leading to increased adoption of the Sovryn Dollar. As more individuals begin to utilize DLLR for transactions, savings, and involvement in decentralized finance, it can help fuel the expansion of Sovryn's ecosystem and heighten the demand for its offerings.
2. Alignment with Mission: The use of DLLR aligns seamlessly with Sovryn's mission to create a decentralized, censorship-resistant financial system rooted in Bitcoin. It symbolizes a substantial stride towards realizing financial self-sovereignty, which is a fundamental tenet of Sovryn.
3. Expansion of Use Cases: The incorporation of DLLR within the Exodus wallet could pave the way for the emergence of new use cases for the stablecoin. This might encompass integration into decentralized finance (DeFi) protocols, offering a more stable form of collateral for loans, or facilitating international transactions. This diversification of use cases can further stimulate the demand for DLLR and contribute to Sovryn's growth.
4. Enhanced Trust and Legitimacy: The adoption of DLLR by a reputable platform like Exodus can lend a degree of validation and trust to the Sovryn Dollar. This could improve the standing of Sovryn and its stablecoin's standing within the broader cryptocurrency community, drawing new users and developers to the Sovryn ecosystem​.

As more companies recognize the benefits of this new model and begin to adopt it, we could see Sovryn playing a leading role in shaping the future of the stablecoin industry.

Exodus Movement's decision to hold the Bitcoin-backed Sovryn Dollar in its corporate treasury is a momentous event that signifies the dawning of a new era in the crypto world. By doing so, Exodus is making a bold declaration about the potential of Bitcoin-backed stablecoins to reshape our financial systems. It's not just an endorsement of Bitcoin's potential to serve as a reserve asset, but also a recognition of the Sovryn Dollar's unique blend of stability, security, and transparency.

This is not just about Exodus and Sovryn Dollar. It’s about what comes after. For the first time, a Bitcoin- backed stablecoin is being used as a treasury asset of a publicly traded company. For the first time, millions of people will be able to spend and save a truly secure and decentralized stablecoin. For the first time, but not the last. We are just at the beginning.

Stay Sovryn!