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Zamzam: How Trendy Blockchain Applied sciences Can Change the Inventory Market

09/06/2021

The capitalization of the cryptocurrency market has for the primary time surpassed the $2 trillion mark. This displays the fast growth of the sector and the influx of recent capital into digital belongings. However, the crypto trade market cap stays a number of instances smaller than the capitalization of the gold market  ($10.6 trillion) or the marketplace for public shares ($100 trillion). Much more, capital is locked in productive belongings within the accounts of firms and companies, within the type of securities, payments of change, futures and choices, which have been inactive for years, bringing modest dividends to their house owners. If even a small portion of this capital strikes to the decentralized finance sector, the cryptocurrency market capitalization will improve by billions of {dollars}. Zam.io’s options are designed to unite centralized and decentralized finance by duplicating fairness capital on the blockchain. The way it works is mentioned under.

Inventory-backed stablecoins? Already a actuality!

The inventory market had lengthy been closed to small and medium-sized traders. The foundations and procedures have been established by giant companies, pouring billions of {dollars} into firm securities. Nonetheless, the emergence of blockchain applied sciences and the event of the DeFi sector have created a brand new class of traders who can freely make investments their capital in blockchain initiatives.

Generally, the fast progress within the worth of crypto belongings has set in movement the influx of stock-market capital into the cryptocurrency sector. Nonetheless, this transferred capital stays comparatively small compared to the whole inventory market capitalization.

“We now have been observing the gradual switch of funding firms’ capital into the cryptocurrency sector. Whereas it represents a small proportion, it would improve yearly as the marketplace for digital belongings grows and earns acceptance world wide. We now have developed particular blockchain protocols that enable the automated duplication of fairness capital in DeFi,” says Yuri Gusev, founding father of Zam.io.

Because of the zMorgan service, customers can switch a part of their capital, locked in firm shares, to cryptocurrencies. That is really a novel instrument that may considerably rework the inventory market.

“Think about you personal $10,000 price of Apple or Tesla shares. You wish to check out cryptocurrency investing, however you don’t have the cash to take a position at your disposal and also you don’t wish to promote your securities. On this case, you need to use the zMorgan protocol, which is able to issuing a stablecoin mortgage price as much as 90% of the collateral quantity secured by your Apple shares. You possibly can then use the acquired stablecoins to purchase different cryptocurrencies or put money into DeFi,” explains Yuri Gusev.

This resolution means that you can shortly switch inventory market capital into the crypto sector and vice versa. It additionally solves a number of issues associated to transparency and the supply of stablecoins backed by actual belongings.

“Those that comply with the stablecoin market will in all probability keep in mind the litigation between Tether and the New York prosecutor’s workplace, wherein the court docket proved that almost all of USDT stablecoins weren’t backed by something,” stated Yuri Gusev.

In reality, Zam.io solves the issue of transparency in securing stablecoins and helps duplicate fairness capital on the blockchain.

Already as we speak, Zam.io is releasing two stablecoins which might be pegged to the US greenback and the Arab dirham.

“Initially USDZ and AEDZ might be backed by different stablecoins (BUSD, USDT). Because the ecosystem develops, US {dollars}, dirhams and different belongings might be used as collateral in escrow accounts.

For every 1 USDZ issued, 1 BUSD or 1 USDT might be locked within the protocol as collateral,” explains Yuri Gusev.

Capital switch to DeFi is a matter of time

As we speak, Zam.io is taking the primary steps to maneuver fairness capital into the decentralized finance sector. Within the close to future, the corporate will be capable of switch billions of {dollars} in crypto-assets and place them in DeFi. Total, Zam.io is working to construct a monetary ecosystem that can combine blockchain banking (Financial institution 3.0), prime brokerage, funds, and cash switch options.