Stable currency, which bears the three basic monetary functions of value scale, value storage and trading medium, represents the industry development trend of asset certification, which has an important impact on the existing digital asset trading system and even the whole financial industry. The traditional pass system can realize the circulation of pass in the blockchain ecology, but it is difficult to get through with the traditional real world. The pass of assets has built a bridge between the blockchain world and the traditional world, and the axle of value transmission has really worked.
It can be said that the certification of assets is the development trend of blockchain industry. As a project born in Singapore, RATE3 has always followed the trend and paid attention to the development of stable currency.
Wave leader, new prospect of RATE3
Early stable coins such as USDT, TUSD and DAI occupied half of the digital currency market, and recently new stable coins such as GUSD, PAXOS and USDC have landed. After a round of baptism, those projects that are truly forward-looking, innovative and in line with regulatory trends in the industry began to emerge, leading a new wave of the industry, and RATE3 is the wave of this wave.
RATE3 is a Singaporean-based blockchain company, which is invested by well-known institutions at home and abroad such as Jingwei China, Distributed Capital, Node Capital, Ledger Capital and Kenetic. Based on Stellar and Ethereum networks, the project develops cross-chain asset certification protocol and cross-chain identity protocol, aiming at establishing a decentralized certification world. The general certificate RTE running in the cross-chain ecology of RATE3 has been launched on well-known exchanges such as Huobi, Bibox and Coinrail.
It should be said that SGDR is the first product of RATE3 certification protocol, and the introduction of stable currency itself is also an important step in the strategic upgrade of the project.
For digital currency traders, the use of stable currency can play a role in maintaining value and hedging risks; For the trading platform, opening the stable currency trading area will be more convenient and cost-saving than using legal tender; More importantly, stable currency is of great significance to realize intelligent tax payment, intelligent bills, efficient and low-cost remittance and cross-border payment.
In addition, for people in countries with high inflation, holding a stable dollar-based currency like USDT can avoid the risk of purchasing power decline caused by inflation.
As the world currency, the dominance of the US dollar is beyond doubt. At present, the stable currency projects with outstanding performance in the market are also anchored to the US dollar. However, there are many projects that anchor the dollar, and the competition is fierce; Moreover, most of the early projects were not supported and supervised by the American government, and there was a risk of fraud and they were criticized. In addition, the regulatory policies of the United States for digital currency are relatively strict, and the regulatory rules of each state are different, which makes it difficult to effectively promote the regulation of the stable currency anchored to the US dollar.
Comparatively speaking, the RATE3 project was born in Singapore, and anchoring the Singapore dollar gave it a unique advantage. First of all, the Singapore government has obtained the highest credit rating from rating agencies such as Moody’s, Fitch and S&P, which shows the international reputation of the Singapore government and guarantees the world status of the Singapore dollar.
In addition, Singapore’s foreign exchange reserves rank 11th in the world, far higher than those of developed countries such as Germany, France and Britain, which is conducive to maintaining the stability of the Singapore dollar exchange rate. Moreover, the Singapore government has always implemented a relatively open policy towards digital currency, and the introduction of a stable currency anchored to the Singapore dollar by RATE3 will make it easier for the central bank and retail banks to support it.
The mechanism is more reasonable, and the chain is intelligently supervised.
One of the modes of stable currency is the traditional centralized legal tender mortgage, which has two main problems:
The stable currency issuing platform deposits legal tender into the bank for mortgage, but due to the lack of supervision, we have no way of knowing whether the platform has been mortgaged with equivalent value. Once the user has a large-scale cash demand, it may cause the risk of non-payment.
The platform has absolute control over the stable currency, and there is a risk of malicious issuance and destruction of the stable currency at any time.
Because of the objective existence of these problems, the supervision of stable currency has long been put on the agenda. In September 2018, the New York State Department of Financial Services announced the supervision of GUSD and PAXOS, which brought the stable currency into the framework of legal supervision for the first time. Although this is only an attempt by the State of New York, it has had a far-reaching impact on the compliance of the stable currency in the whole world, representing the trend that digital currency will certainly embrace supervision.
But in fact, if we want to solve these problems more effectively, a smarter supervision is the right way out. Therefore, SGDR has designed a more reasonable mechanism to stabilize the currency, thus making better use of blockchain technology.
When users register with a trust agency to buy stable coins, they need to complete the KYC/AML process according to the regulatory requirements, and RATE3 provides an identity authentication protocol. Trust agents can use smart contracts to complete the relevant processes, and the process will not touch the user’s information and infringe on the user’s privacy.
After completing the KYC/AML process, users will deposit their Singapore dollars in a third-party custodian bank for 1: 1 legal tender mortgage. After the agent receives the remittance information, he initiates a request to the RATE3 smart contract to allow him to make SGDR coins.
Finally, when the coins are minted, the smart contract will automatically transfer the stable coins to the address of Ethereum provided by the user.
In short, from the process under the chain, the storage of legal tender in the custodian bank can not only facilitate the third-party audit, but also introduce insurance companies to participate in the protection of asset security; The identity authentication, stable coin casting and transfer on the chain can ensure safety, transparency and traceability, and realize the intelligent supervision of linkage between the chain and the chain.
Cross-chain technology is powerful, and RATE3 leads the global asset certification.
Due to the complete characteristics and good ecosystem of Ethereum Turing, popular stable coins such as USDT, DAI and TUSD are all built on Ethereum network, and SGDR also chooses to issue and cast in Ethereum. But the biggest difference of SGDR is that it can realize the cross-link between Ethereum and Stellar network through RATE3 protocol. Stellar network has low transaction cost, efficient verification process and smooth asset conversion, which is very suitable for payment and high-speed asset transaction applications.
Cross-chain technology can bring two benefits to SGDR: on the one hand, SGDR can circulate freely on both Ethereum and Stellar networks through asset certification protocol, which greatly increases the applicability and liquidity of SGDR; On the other hand, through cross-chain identity protocol, users’ identity information on different chains can be exchanged, so that users can choose public chains more flexibly and participate in their community ecology by using stable coins.
But that’s not all. SGDR, the stable currency, is actually just a form of asset certification for RATE3, and the new ecology of asset certification for RATE3 actually has a more magnificent blueprint.
This blueprint depicts a scene for us: all assets we are familiar with, including equity, creditor’s rights and real estate, can be circulated more freely through certification.
At present, SGDR is in the open testing stage. In the future, RTE will support the authentication protocol and identity protocol. Within the ecosystem of RATE3 itself, RTE Pass undertakes the functions of transaction fee payment, asset mortgage, betting and service purchase, and its good business model and incentive mechanism will promote the rapid circulation of the entire asset pass including SGDR.
RATE3 will start from the stable currency SGDR, take advantage of its complete universal certificate economic system, unite the strength of Singapore government, traditional financial institutions, academic institutions and other partners, and lead the healthy development of global asset certification. In the future, there are many things that RATE3 can do. A brand-new, multi-chain, closely linked, chain-linked and chain-linked new ecology of RATE3 asset certification is worth looking forward to by all.