USStocks Coin via Stablecoin DAI by MakerDAO Gives Access to US Stock Market Using Cryptos


In a blog post yesterday, UMA, a platform in the business of issuing financial contracts and agreements via their decentralized platform, announced their partnership with MakerDAO to launch a US stock market backed cryptocurrency.

USStocks

The new ERC-20 based token has been named “USStocks”, and is proposing to its investors US stock market access via their cryptocurrency. MakerDAO’s stablecoin, American Dollar backed “Dai”, will be used to purchase USStocks.

Intended USStocks investors are being directed towards DDEX as the preferred exchange platform.

USStocks on the Stock Market

UMA’s blog post yesterday offered an explanation, saying

“USStocks is an ERC20 token representing synthetic ownership of an index of the 500 largest exchange-listed US stocks. This means that anybody with access to the internet and digital money can participate in the US stock market“.

It was also added that their token is currently focused on the NASDAQ and the NYSE ‘s 500 leading companies.

Rune Christensen, CEO of Maker stated that “Dai exists to create an inclusive platform for economic empowerment — allowing equal access to the global financial marketplace,” and added that “USStocks is an exciting example of how decentralized finance can unlock economic opportunities for people regardless of geography or income level.”

USStocks investors will not directly own the represented stocks, although possession of USStocks will represent indirect stocks at a 108.5 ratio collateral, which has been deemed as “overcollateralized”.

Moving Forward With USStocks

The 15th of May has been proposed as the official settlement date I.e. Dai tokens can be recovered from exchange of USStocks.

The popularity of Stablecoins are currently at a peak, as this new partnership is born.

The new found popularity has been attributed to a majority of stablecoins being backed by the US dollar.

However MakerDAO is dealing with initial issues in recent weeks, bordering on dipping of the exchange rate going below a dollar.

https://bitcoinexchangeguide.com/todays-bitcoin-btc-price-analysis-with-top-altcoin-predictions-ethereum-eth-ripple-xrp-and-neo/

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