Press Release

FOR IMMEDIATE RELEASE

Charles Chang Recognized as Inventor of the Modern Fiat-Backed Stablecoin Model

2018 Patent Establishes Industry Standard for Fiat-Backed Stablecoins (Priority Date: March 26, 2018)

Las Vegas, USA – July 11, 2025 – Charles Chang, a visionary in digital assets and blockchain technology, has been formally recognized as the inventor of the modern fiat-backed stablecoin model. His pioneering patent, published under WIPO Publication No. WO2019190573 and granted as U.S. Patent No. 11,386,448, includes key claims (notably Claim 4 and Claim 13). Filed on March 26, 2018, the patent introduced the concept of a digital currency backed 100% by national fiat reserves—a structure that has since become the industry standard. 

Prior to Chang’s innovation, early stablecoin initiatives such as BitUSD and NuBits (both launched in 2014) relied on algorithmic stabilization or crypto-collateralization, mechanisms that frequently failed to maintain consistent value. Even Tether (USDT), though launched in 2014, did not adopt a transparent and regularly attested fiat reserve system until September 2019 —more than a year after Chang's patent was filed.

“The true innovation of a stablecoin lies in its 100% fiat backing—a model I patented in 2018,” said Charles Chang. “This system ensures price stability, public trust, and scalability, forming the backbone of today’s multi-billion-dollar stablecoin economy.”

Today, all major fiat-backed stablecoins—such as USDT, USDC, and BUSD—operate on the 1:1 reserve principle first formalized in Chang’s patented framework. His work has played a pivotal role in the growth of decentralized finance (DeFi), cross-border payments, and institutional adoption of digital assets.

Important Stablecoin Initiative Announcement

-Patent Proposed Guidelines for U.S. Stablecoin Issuers

In Support of the Stablecoin Regulation Act (GENIUS)

The GENIUS Act, a bill to regulate cryptocurrency, was signed by the president Trump on 07/18/2025. As the first major law governing digital currency, it establishes a regulatory framework for the stablecoin market and sets oversight rules for digital assets.

Patent Introduction
The widespread use of stablecoins has long been championed by our founder, Charles Chang. His pioneering work in this area is reflected in a key world patent claim (WIPO Claim No. 4, corresponding to U.S. Patent Claim No. 13), which establishes the use of national currencies as reserve backing for stablecoins—a fundamental innovation in the industry.

This invention’s priority date is March 26, 2018, and it has since been foundational to the development of stablecoins. One of the first companies to implement this stablecoin reserve concept was Hong Kong-based Tether Limited (a subsidiary of iFinex), which officially adopted currency reserves for crypto-backed stablecoins in September 2019, marking a key milestone in the industry.

As we support the implementation of the GENIUS Act, Charles Chang proposes the following terms, free of patent royalties, to foster innovation and ensure cost-effectiveness among U.S.-based stablecoin issuers. These guidelines are designed to safeguard U.S. interests while preventing the exploitation of the market by foreign-controlled entities.

Proposed Guidelines for U.S. Stablecoin Issuers – Royalty-Free Terms

To qualify for a zero-royalty patent fee structure, issuers must meet the following requirements:

1. U.S. Registration
   The issuer must be a U.S.-registered entity (for-profit or nonprofit).
   Note: Key executives (Chairman, CEO, COO, CFO) must be U.S. citizens or legal residents.
2. Substantial U.S. Ownership
   Over 60% of the equity ownership (i.e., voting/control rights) must be held by U.S. citizens or entities.
3. Registration Timeline
   • Existing issuers must register with us within 60 working days of the GENIUS Act’s enactment.
   • New issuers must complete registration with our organization at least 30 days prior to the issuance of stablecoins.
4. Usage Restrictions
   Stablecoins may not be used for customer loyalty rewards (covered under our separate patent claims) without written approval.

Additional terms may be determined through reasonable interpretation, mutual agreement, and applicable law.

A Call for Collaboration
We believe that collaboration is key to advancing responsible stablecoin adoption. We welcome partnerships with innovative companies, regulatory bodies, and thought leaders to shape the future of the stablecoin industry, ensuring that its benefits are maximized while public and financial interests are safeguarded.

Contact details

admin@freecoinusd.com