OK first disclosed OKUSD issue: Based on OKChain, anchoring USD, compliance is the primary purpose
In March 2019, OK Group completed a strategic investment in the US trust company PrimeTrust. On April 18th, at the media meeting held by OKcoin and Prime Trust, OK first disclosed the design concept and strategic planning of OKUSD.
It is reported that OKUSD is a stable currency for anchoring the issuance of US dollar assets. Currently based on ERC20, after OKChain is launched, it will be issued based on OKChain. The number of issuances and the issuance time have not been disclosed yet. But Babbitt learned that OKUSD's coinage method is that after the user registers on PrimeTrust and passes the KYC audit, the US dollar is deposited into the account, and then selected to be converted into OKUSD. Early OK may take out a fund as a cold start. But then the circulation of OKUSD actually depends on the amount of dollars the user has hosted.
Why is OK not issuing OKUSD on its own, but through investment, by PrimeTrust? The most fundamental reason is that for compliance reasons, you need to choose a licensee. In fact, in the past two years, OK has obtained some compliance licenses in the United States, Japan, South Korea, the Philippines, Malta and other countries through mergers and acquisitions, investment and cooperation.
Xu Kun, vice president of OK Strategy, said that the investment in PrimeTrust is based on three strategic considerations. First, the global layout, the blockchain industry needs to have a global perspective, OK Group hopes to further open the global market through investment; second, compliance development, digital assets The transaction is bound to move toward compliance; the third is user-oriented, providing users with diversified and fully stable services, allowing global users to participate in this market.
She also said that stable coins will play a value in three dimensions. First, from the perspective of qualified investors, stable currency is a very good connector for traditional financial markets and digital currency markets, and will also increase the allocation of assets. Choice; Second, it will play a very important role in the cross-border payment field; Third, from the perspective of public-chain infrastructure, there will be a large number of DAPPs developed in the future, and stable coins will allow more incremental users to join. Come to the ecology.
Babbitt compiled the following points that were revealed at the press conference:
Point 1: What is the architecture design of OKUSD?
Hu Dapeng, chief researcher at OK Research, said: "OKUSD is not just a currency. It is essentially a very rigorous financial product. So the goal of the design is to be compliant, auditable, and supervisable. In order to achieve such a goal, it needs to be internal. A mechanism of division of labor and mutual restraint is formed to internally absorb risks. This system includes six roles: trustee, fund custodian, bank, lawyer, accountant, and smart contract audit."
The trustee is responsible for reviewing the user's KYC/AML, anti-money laundering and other information, and completing the Token casting and destruction operations according to the user's instructions. This part of the responsibility is mainly completed by PrimeTrust; the US dollar assets on OKUSD are managed by the asset custodian. Its duty is to ensure that funds will not be used for other purposes; banks, as savings institutions for US dollar funds, must comply with the relevant requirements of the Federal Deposit Insurance and circumvent the financial risks of banking institutions.
The lawyer is responsible for reviewing the qualifications of the relevant institutions and ensuring the legitimacy of the entire business process; the role of the accountant is very important. He needs to periodically audit the US dollar assets, ensure the consistency of the assets and chain of US dollar assets, and publicly disclose the audit results; The contract is open and there must be a third party smart contract audit company to ensure it is safe.
At the press conference, Hu Dapeng introduced the design of the OKUSD organizational structure, but for the technical details and process details, it has not revealed more.
Point 2: What are the characteristics of OKUSD?
OKUSD has six characteristics as a stable currency solution: compliance, ERC20 compatibility, transparency, upgradeability, dollar asset collateral, and 100% solvency.
Hu Dapeng, Principal Investigator of OK Research, said: "Transparency means that it will never be over-extended; compatible with ERC20 means compatibility with third-party wallets, which is friendly to business users; and as a smart contract, it is scalable, although it It's a stable currency, but we want it to have scalable features to meet future needs."
Point 3: What is the impact of issuing OKUSD on OK?
Xu Kun talked about the impact of OKUSD from two dimensions. For OK Eco, OKUSD will become a lubricant and value-preserving investment, and build a complete trading closed loop. OKUSD opens up the real world and the encryption world, introducing incremental growth into the OK ecosystem. For the entire industry, OKUSD's compliance approach, actively embracing regulation or driving industry self-discipline, may further break the monopoly pattern of the stable currency market.
Point 4: What are the future plans for OKUSD?
Hu Dapeng said: "OKUSD's first goal is to use as an investment tool to hedge the volatility of cryptocurrencies and provide users with a financial product that can spread risk. OK Blockchain Engineering Institute will continue to explore the possibilities of blockchain technology. Sex, applying new technologies to finance, including technologies such as public links, smart contracts, clearing agreements, compliance agreements, etc., will continue to be integrated into OKUSD. In addition, OKUSD's business scalability is very good and can be applied across Many areas of the OK ecosystem such as payment, financing, investment, and wealth management."
Point 5: How does the OK Group view stable currency?
Xu Kun believes that stable currency has three meanings for the blockchain market:
1. a wormhole connecting two parallel worlds
Stabilized currency is a kind of encrypted asset that maintains a stable value relative to the target asset. The current mainstream stable currency is relatively stable with the exchange ratio of legal currency (such as US dollar);
In view of the relatively stable exchange ratio between legal currency and goods and services, the ultimate anchor of stable currency is goods and services, that is, the actual purchasing power is linked to the real world;
Stabilizing currency is the 'value-keeping' medium in Token's investment process. It is a kind of efficient transaction settlement tool for 'transaction-settled'. It is also a decentralized world currency and safe-haven asset.
2. Key to the cryptocurrency market
At present, there are basically three types of stable currency projects in the industry: anchored currency, encrypted asset mortgage, and algorithmic central bank. From the historical price point of view, the stability of the stable currency using 'Fat-Full Mortgage' is the best. In February of this year, JPMorgan launched JPM coin, which is based on the private chain and linked to the US dollar. It is currently used for cross-border payments between institutional clients. There is also news that Facebook is also interested in developing stable currency. Therefore, it can be seen that the stable currency has become the key for traditional financial institutions to enter the cryptocurrency market.
3. Open the channel for digital asset trading
In the process of the overall rapid expansion of the digital asset market, the market value of stable currencies has continued to grow. In the process of turning the bear into a bull market, the stable currency is an important means of maintaining value; in the process of turning the bull market into a bull, the stable currency is an incremental capital entry, which is crucial for the development of the entire market.