We would like to take this opportunity to thank the most passionate, the best educated and most committed community in all of blockchain. #PulseChain users have waited years for the chain to go live and now months without a native stablecoin on the network.
Through all our ups and downs at Coast, we’ve received tremendous support from all of you and we can’t thank you enough for the kind words in public and in private. Cheers!
Our product team has taken the decision to roll out the Coast Stablecoin $CST and the Fiat On-Ramp in several distinct phases. Phase #1 will include the feature set outlined below.
USA, UK, Australia & Canada
The Coast on-ramp will be available to PulseChain users in 168 countries. But this is going to take us some time to achieve. To simplify life for our compliance department, we’ve decided to onboard four primarily English-speaking markets first.
We have ongoing communications with regulators in all four of these markets as well as legal opinions from local attorneys confirming that our flow of funds meets with the standards of the relevant regulatory agencies.
ACH (US-only) and Wire
All Coast users will be required to complete KYC with our banking partner to open a digital account for custody of Fiat denominated in $USD. Funding a digital account with ACH or a Wire is not purchasing cryptocurrency. You are sending money from your bank account to your bank account.
We are actively exploring options to expand this set of funding methods with localized bank transfer methods in key markets like the EU and parts of South Asia.
What about Credit/Debit Cards?
We had planned for credit and debit cards to be part of the Phase 1 rollout. However, at 10am this morning (August 3rd, 2023) we received word that our credit card processor was halting all services for all clients because of an increased number of fraudulent transactions in the past several months.
Rather than delaying further, we made the decision to launch today with ACH and Wire payments. We are already in talks with multiple card processors who will be able to facilitate credit and debit card transactions for us.
This feature is our #1 priority and it will go live as soon as humanly possible.
ACH – 5+ Days
Wire – None
Because we are considered a tech layer (not in the flow of funds between you and PulseChain), our on-ramp and stablecoin rely on licensing of third party providers. This comes with constraints and all providers are different.
During phase 1 of our rollout, customer funds added with ACH and Debit/Credit will be held for around five days. We have also implemented a series of automated fraud protection checks that will occur prior to all ACH deposits. These checks could result in transactions considered a high risk of fraud being declined. If this happens to you, please contact our support team for manual review of your account.
The Instant Buy feature of our Beta product was employed by almost all Coast users. However it will not be available during Phase 1 of our product rollout.
Instant Buys are a way to shift risk away from the end user. Having this feature in our Beta meant that Coast users had fewer than $300 frozen when our previous banking partner failed. But this risk is not eliminated, its just shifted from the end user to Coast and our banking partner. Until we have a longer track record of successful operations without a high incidence of fraud, we will not be approved to offer instant buys for $CST.
Incorporating instant buys into our fiat on-ramp to PulseChain is something the community desperately wants and therefore it is a priority for Coast. Assuming we have a positive rollout in Phase 1, we could see this feature as soon as Phase 2.
Since the end of our Beta phase, Coast has been interviewing multiple potential on-ramp and fiat custody partners. If you create an account with Coast and complete KYC, you will be opening a custodial account with our new banking partners, a Nevada Trust company called Fortress.
This relationship is yours and yours alone. While Coast will provide the front end ability for you to Fund your custodial account with Fortress, we do not custody any user funds either in end user accounts or in the Coast stablecoin collateral account.
The Coast Stablecoin is backed 1 to 1 with $USD. As part of our Phase #2 rollout we will be incorporating a live analytics page on the Coast app showing real-time data on the balance of the reserve account as well as Mints, Burns and a range of other data points.
During Phase 1, users who lock WAIT on PulseChain will be able to reduce the fees for converting $USD to $CST and back.
But what happens to those users who locked WAIT on Ethereum during the Beta?
In Phase 2, we will be rolling out the ability to buy $CST on PulseChain with Stablecoins on Ethereum ($USDC, $USDT and $DAI). Users who lock WAIT on Ethereum will be able to reduce the fees for converting these Stablecoins to $CST. This will effectively create a free bridge between Ethereum and PulseChain for users who lock eWAIT.
You can find the Coast Stablecoin contract address here:
The contract has been verified in the block explorer meaning that you can run all of the contract functions on scan.pulsechain.com. The contract has also been audited by SolidProof, just like the WAIT and WAIT V2 contracts
As major sacrificers for both PulseChain (PLS) and PulseX (PLSX), we are thrilled to hear that other stablecoins like Liquid Loans ($USDL) and Powercity ($PXDC) will be live on #PulseChain soon. These products are essential to the healthy functioning of the ecosystem and we can’t say enough good things about the commitment of these teams in getting to market.
$CST does not compete with $USDL or $PXDC. Each product has a distinct user case. Our design intention in releasing $CST is to get economic energy onto #PulseChain with as few steps and as little friction s possible.