The stablecoin hype has been real over the past few months. With the 2018 downturn in cryptocurrency markets and increased volatility on the price of BTC and ETH, the potential of stablecoins is larger than that of Bitcoin itself. Recently, the Universal Protocol Alliance has announced the launch of the Universal Dollar (UPUSD) and Universal Bitcoin (UPBTC) stablecoin, now available for purchase on digital wallet provider Uphold. These stablecoins are designed for usability and targeted at the 2.5 billion people around the world who own bank accounts.
The UP Alliance consists of leading companies in the crypto world, including Cred, Uphold, Bittrex, Brave, Blockchain at Berkeley, CertiK, and Bitgo. The goal of the Alliance is to find ways to usher in the next wave of cryptocurrency users. In order to do this, blockchain products and applications must be more reachable and easier to manage. To read more about the family of Universal Tokens, click here.
“Unlike other stablecoins, the UP Alliance seeks to flood the collateralization process with daylight in order to increase transparency in the sector. We give customers verifiable confidence that they are buying a fully-reserved Universal Dollar,” said Dan Schatt, Cred Co-founder and Chairman of the Universal Alliance.
To put it this amazing earning opportunity in perspective, the most common interest rate on savings accounts in the United States is 0.01%, although some credit unions and online banks will offer higher rates based on your net worth. In Europe and Japan, savings account owners are living in a world of negative interest rates, where you literally are paying your bank to save your money for you.
In Venezuela, citizens are dealing with the government’s insane 13,000% hyperinflation rate, which has rendered the local currency, the bolivar, nearly worthless. In Great Britain, Brexit uncertainty and a 0.75% Bank Rate have led many citizens to seek interest rates on their savings outside of bonds — or gilts as they are called in Great Britain.
“This is the first of many tokenized digital assets we intend to introduce that will facilitate the instant and seamless conversion of different forms of value,” said JP Thieriot, Co-founder of the Alliance. “In doing so, the UP Platform will unlock the vast and untapped full potential of blockchain to transform how individuals and businesses store and transfer value, with Universal Tokens representing the next generation of digital money.”
Stablecoins that claim to be pegged 1-to-1 to the dollar actually trade either above or below $1. The Universal Dollar will be different because of their minting process. UPUSD is pegged 1-to-1 with the USD and is fully transparent, compared to other popular stablecoins.
What’s the difference between WBTC and UPBTC?
Universal Bitcoin differs in a few important aspects. First, it is architected with institutional-level security in mind. Attackers cannot create arbitrary new proxy tokens to spend on the networks. The Universal Protocol Platform contains a request system that can manage whitelists and revoke access to addresses addressing critical security issues associated with compromised keys.
Second, UPBTC works seamlessly with the Universal Protocol Token (UPT), designed to allow for the quick, low-cost conversion of UPBTC to Bitcoin and other digital assets. Third, UPBTC is designed as a smart bookkeeping system that logs deposits and withdrawals on a smart contract. If a bad actor wishes to down the website housing the transparency page, anyone can still query Ethereum for the data, a huge advantage that instills trust and confidence in the system. Finally, UPBTC is backed by some of the biggest names in the blockchain industry, all supporting various aspects of the UPBTC ecosystem. CertiK validates the code integrity of the UPBTC smart contracts, Cred offers UPBTC lending and borrowing services, Blockchain at Berkeley supports cutting edge features and functionality and Uphold provides wallet and exchange functionality.
The Big Differentiator
If invest your money today in crypto, chances are you are not earning a return. With the launch of the Universal Dollar and Universal Bitcoin, you can earn a very good return on your stablecoin assets with CredEarn.
Cred is the first lending company in the crypto space to create a joint business relationship and collaboration with PwC, to help define the standards necessary to really support the next hundred million people that are getting involved in the blockchain space. We also recently added BitGo as a custody partner. Custodial assets held completely by BitGo are insured for up to $100 million through insurance group Lloyd’s. The insurer has a presence in nearly 200 countries and is one of the world’s largest insurance and reinsurance marketplaces. We are constantly thinking through security, risk management, rating systems, and everything that is really required to create the ecosystem.
Our goal is to build confidence in it, to support all the new users that are going to come in. The types of collaboration that we have in this space are important in how we are making this available. By staking utility tokens, you can actually increase your returns, which has never really been possible before. There are really interesting safeguards for investors that don’t exist today that allow you to recover your private key through professional custodians, should anything happen to you or it. If you want to get to the next hundred million people that lose their online banking password every week and are scared to death of doing the same thing with their private key — you need this sort of thing.
I think the biggest differentiator of all is our target audience. You’ve got a lot of stablecoins that are just focused on the existing 24 million wallets out there that are doing a lot of trading. We are focused on the 2.5 billion bank accounts that are not yet in crypto, and looking to provide something that is powerful and useful for them. The Argentinian who would love to get into the US dollar today and just can’t. This is what makes the Universal Dollar and Universal Bitcoin so unique.