New Universal Dollar (UPUSD) Enters Market in A Rush of New Stablecoins
The Universal Protocol Alliance is a group of organizations that support blockchain technology and innovation. The group includes entities like Uphold, FBG Capital, Cred, Blockchain at Berkeley, and Brave. In a decision to dive into the blockchain industry collaboratively, the group is now launching a digital asset called the Universal Dollar (UPUSD).
The UPUSD will be completely transparent and will trade at a 1:1 ratio with the US Dollar, which is going to be held within local FDIC-insured banks. This new stablecoin will let investors gain access to bigger returns on their deposits, while acquiring more affordable credit. Right now, the token will grant the users access to a line of credit that amounts to $250 million, which has a 2% to 5% interest rate, and lets the user get involved with flexible loans. The Uphold platform supports the coin right now.
CEO of Uphold, JP Thieriot, said,
“This is crypto finally delivering the goods to the mass market Worldwide, over 2.5 billion people with bank accounts are likely to be interested in cheaper credit and a higher yield on their deposits. This isn’t about imagined “utility” for a ratified use case. The Universal Dollar should have broad appeal to a wide array of people and, for some in developing economies, could be life-changing. Without thousands of employees, miles of high-rent real estate and the baggage of legacy systems, companies in our industry have a big structural advantage over traditional banks. This advantage has to accrue to the benefit of the mass market, or our industry will remain the exclusive domain of technophiles and speculators.”
The perk of the Universal Dollar is the way that it offers a lot of the benefits that consumers normally see from conventional fiat currency. Some of those benefits include:
- Built-in loss recovery
- Optional custody assignment of private keys to digital wallets
- The ability to name a beneficiary for their wallet
- Up to 5% earnings yearly, based on the value of the digital assets
- Flexible credit line with competitive terms.
Thieriot elaborated saying, “The Universal Dollar should help crypto and blockchain jump the rails, creating mainstream financial products that allow virtually anyone, anywhere to buy digital assets, and then borrow against them, as well as earn interest on fiat-stable deposits.” Essentially, while the initiative is taking place, supported digital assets on the Uphold platform have the ability to earn interest and give the user access to a secured credit line.
Co-founder and president of Cred, Dan Schatt, noted,
“Traditionally, you’ve had to own a home to have access to cheap credit products, such as the American ‘HELOC.’ Now, a new generation can access similarly convenient credit without such a high bar and through simple ownership of digital assets.”
Along with the launch of the Universal Dollar, the Universal Protocol Alliance will also be unveiling Universal Bitcoin (UPBTC), which will be a fully-reserved and interoperable token.