Liechtenstein-based cryptocurrency exchange Bittrex Global has listed two stablecoins developed by the Universal Protocol Alliance, of which Bittrex is a member. The goal of the Alliance is to create standards and products that appeal to mainstream cryptocurrency users.
As governments are still slow to drive forward central bank digital currencies, private businesses are coming up with their own solutions. The Universal Protocol Alliance (UP) has now announced the listing of two currency-pegged stablecoins, the Universal Euro (UPEUR) and the Universal Dollar (UPUSD) on Liechtenstein-based cryptocurrency exchange Bittrex Global.
UPEUR is pegged 1:1 to the Euro and UPUSD is pegged 1:1 to the U.S. dollar. Besides, Universal Protocol Alliance also listed the Universal Protocol Token (UPT) on Bittrex, the Alliance’s Utility Token, that will offer token holders benefits from Alliance members, for example, lower fee structures on Bittrex Global.
Stablecoins protect users from high volatility
The Universal Dollar and Euro stablecoins are providing an alternative to existing stablecoin products. Stablecoins are particularly useful for businesses or individuals who want to use a digital currency without exposure to high volatility. Especially in countries with high inflation or where large parts of the population remain underbanked, users can benefit from stablecoins that can be used as a means of payment or a stable store of value.
In the past, transparency has been an issue with some of the major stablecoins. If the organization administering the coin does not keep a big enough reserve of the underlying asset, the value of the stablecoin will get diluted. USD Tether, for example, the most commonly used stablecoin had fallen into disarray in 2018 when allegations were made the reserve was not sufficient to ensure the currency’s value.
Dan Schatt, Chairman of the Universal Protocol Alliance, says, “Unlike other Stablecoins, the Alliance seeks to flood the value substantiation process with daylight so it doesn’t operate as a black box. We provide customers verifiable confidence that they are buying a fully-reserved Universal Dollar or Euro.”
UP aims at boosting crypto adoption through a universal and transparent reserve standard
The Universal Protocol Alliance is a coalition of blockchain companies, including Liechtenstein-based Bittrex Global, Cred, Uphold, Blockchain at Berkeley, and CertiK. The goal of the Alliance is to create a universal and transparent reserve standard and to launch digital currency products designed to appeal to mainstream users on a massive scale.
The Universal Protocol Platform allows for the minting, custody, and storage of digital assets, all tailored to facilitate the mainstream adoption of cryptocurrency.
“We’re thrilled to join an Alliance of like-minded blockchain companies dedicated to incubating blockchain-based technologies and helping projects like the Universal Dollar and Universal Euro go mainstream,” said Tom Albright, CEO of Bittrex Global. “The blockchain industry needs technology that can build trust and transparency, and the platform the Alliance has built should help drive mass utility and adoption.”
The new stablecoins will trade freely on Bittrex Global. Users who want to mint or redeem their stablecoins using USD or Euro may open an account on Uphold. According to the official announcement, more UP products are already underway.
“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.”