The benefits of crypto are upon us. On January 4th, the Office of the Comptroller of the Currency (OCC), a division of the US Treasury, clarified that stablecoins are a legal method of transaction. This is an exciting development that means crypto assets are now accessible to financial institutions and fintech companies.
Stablecoins improve settlement time, provide security, and reduce transaction cost
A type of crypto asset, stablecoins are supported by blockchain and designed to provide stability within cryptocurrency markets because they are pegged to an underlying reserve asset, often the US dollar. Stablecoins are programmed via smart contracts on the blockchain. This means that each stablecoin can be customized with a unique set of rules. This functionality is what allows each stablecoin to have specific characteristics and benefits that make it a custom fit for various sectors.
Stable digital dollars provide a reliable medium of exchange, allowing for the sending and receiving of payments at any time. In contrast to traditional settlement, stablecoins can be transferred between counterparties almost instantaneously without the chargebacks associated with wires or ACH transactions. Additionally, stablecoins transfer at almost no charge, unlike the cost of sending a wire transfer and converting currencies.
However, not all stablecoins are created equal. Efficient and effective stablecoins need a reliable storage place for the underlying supporting assets, and seamless technology to manage the redemption/creation process without disrupting value stability.
Partnering to activate a new stablecoin, or to create access to stablecoins reduces risk, achieves scale, and can be very cost effective
Prime Trust’s all-in-one infrastructure makes crypto integration and custody fast, secure and easy. Just need a custody solution? Looking for a complete solution from rails to issuance? Our API platform is fully customizable, secure, and compliant.
Take for example, Zytara, the new digital wallet for gamers. In partnering with PrimeTrust, Zytara was able to initiate their own digital currency, $ZUSD, that will revolutionize how payments within gaming function. In this case, PrimeTrust serves as the all-in-one solution for Zytara to turn on their stablecoin. We’re the infrastructure custodian and the issuer and administrator for $ZUSD.
We can also turn on point solutions from the API platform as needed. For example, in 2019, we provided custody for the release of USD Anchor, a stablecoin released by IBM in partnership with Stellar and Stronghold.
With payments, custody, settlement, liquidity, and compliance all in one place, we enable you to launch your way. Learn more.