The stable currency market, which recently anchored the US dollar, is very lively.
First, the New York Attorney General prosecuted Bitfinex and Tether. This prosecution led to a significant increase in the number of stable coins issued on the basis of the legal currency mortgage. In addition, the MakerDAO project has different opinions and personnel changes due to different opinions on the governance methods. Prior to this, due to the strong demand for its stable currency, this project has repeatedly raised the cost of stable currency.
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So recent market factors and regulatory factors have led to a very active market for stable currencies. This has attracted more attention from the market to the stable currency business.
Hot and stable currency
Prior to April 2019, the mainstream stable currency in the cryptocurrency market was all issued based on the ERC20 standard (USDT is also based on the Bitcoin omni agreement), which was issued on the Ethereum public chain.
However, in April of this year, this situation was broken and the stable currency began to enter other public chains.
On April 4th, IOST announced the issuance of stable currency iUSD based on USDC and TUSD. In other words, iUSD is the IOST version of USDC and TUSD. On April 9, TRON announced the launch of TRC20-based stable USDT, the TRON version of USDT; May 1 On the day, ONT announced the release of the stable currency PAXO based on the ontology OEP-4 protocol, the ONT version of PAX.
Recently, Hong Kong Main Board listed company Advance Holding Group Co., Ltd. also revealed that it has completed the registration of its subsidiary OKLink Fintech Limited (hereinafter referred to as OKLink), and will officially launch the USDK compliance stable currency business in the near future, and officially launch the OKLink.com website. Operation.
According to the official website of OKLink, USDK is jointly launched by OKLink and American Trust's Prime Trust for in-depth technical and business exchanges. It is a stable currency exchanged with USD 1:1. Each USDK corresponds to 1 in the Prime Trust special account. US dollars.
Striving for a stable currency means there is a blue ocean market that is not fully developed. In fact, more and more companies are involved in the issuance of stable coins, and the resources of each project party are different, so their respective stable currency-based business models are not the same.
The revelation brought by the stable coin "number one player" owner: compliance transparent
It took nearly a month, and on May 21st, the New York District Court finally ruled that Bitfinex and Tether had misappropriated $850 million: it was determined that more than 50% of Bitfinex and Tether were likely to engage in “stock fraud” and rejected their protests. Conditionally approved the New York Attorney General to retrieve his business information.
That is to say, afterwards, NYAG (New York Attorney General's Office) seems to be using all available means to enforce Bitfinex.
Being held by the regulator can be said to be the worst result. After many crisis of trust, USDT has been faltered as the “number one player” in the stable currency market.
However, this makes the first and second markets more clear: because of its particularity, the stable currency market needs to connect legal currency and virtual currency. It is difficult to completely separate from legal supervision like many virtual currencies, because leaving the supervision means the lack of legal protection. Compliance is the only way to stabilize the development of the future currency, and it is also the only way to enhance market confidence and liquidity.
OKLink CEO Ren Yixin knows this. Regarding the upcoming stable currency, he said, "We know where the current pain point of the stable currency is, so including compliance operation, transparent auditing, etc. are our core competitiveness."
Here again, OKLink's partner, Prime Trust, a technology-driven and regulated US trust company, has to be mentioned. It is licensed by the Nevada Banking Board Office to provide a wide range of services to US and international clients, including asset custody, trust, custody, capital handling, anti-money laundering compliance and trading techniques. This also means compliance is the main theme of the development of USDK.
In addition, the USDK smart contract has also passed the industry security company Certik, slow fog audit, after which the audit company will provide monthly financial audit reports to ensure the transparency of funds.
The crowd will compete, who will be proud of the rivers and lakes?
There are main chains, TRON and other public chains. Later, there are new and old world financial institutions such as JP Morgan Chase and OK. The stable currency has been established. Obviously, the wind of the stable currency battlefield has started. Once the situation is strong, the bow will not open. It is necessary to kill some results.
Based on the current stable currency on the market, the future stable currency is likely to exist in two forms.
One is a stable currency generated in a distributed manner based on digital asset collateral. The other is the legal currency stable currency issued by central banks based on their credit.
In the current stable currency market, MakerDAO is the first form of distribution. In the second way, some financial institutions are in front of the central bank. Under the conditions permitted by financial supervision, they issue an equal number of stable coins based on the legal currency they are mortgaged. Representatives of these projects include USDC, GUSD, and the upcoming USDK. The two types of stable currency are issued in different ways and disadvantages.
In Ren Yi's view, the early blockchain brought a crazy pattern that made people misunderstand. In the era of barbaric growth, people still don't understand what the blockchain can bring. When there is a way of compliance and stability, the door to the blockchain world is truly open to the people.
The USDK, backed by the OK Group and the exchange, has a high degree of liquidity and acceptability of the issued stable currency in terms of the number of users. In addition, the talents and experience of the cryptocurrency field have become the absolute advantage of issuing stable currency for many years. . It can be said that we know ourselves and know each other. In this "war" of the smoke, USDK will eventually win its place. (Golden Finance)