Wall Street Investors May Find The Incentive They Need To Adopt Blockchain Via Stablecoin Gateway
Many cryptocurrencies have had a lackluster year, but the one type of crypto asset that seems to be thriving was stablecoins. These coins are identified by their ability to work at a 1:1 ratio, and there are multiple stablecoins around the world that are attached directly to the local fiat currency. In fact, there are 50 different stablecoin projects right now.
The increase in the popularity of stablecoins’ popularity could indicate a change that is coming in the crypto market, but without the volatility that cryptocurrency typically comes with. For this reason, a recent Forbes article suggests that stablecoins will ultimately lead to mainstream adoption in traditional finance.
As a result of this confidence, the blockchain industry is slowly linking the financial industry with blockchain technology. Between stablecoins and blockchain technology, Forbes says that much of the application could be in real estate finance, which is predominantly for the many intermediaries at interact during the whole process of buying and selling properties.
“Moreover, once these investments are issued, they have historically been illiquid. This is partly due to the lack of transparency throughout the capital stack, making it difficult to accurately value the different constituents in a capital market transaction.”
The wide opening in this field is difficult for blockchain technology companies to ignore. Fluidity Factora, for example, has decided to release a real estate token, which has been dubbed FACTOR-805. The token makes it possible for investors to pay and receive interest in MakerDAO’s stablecoin, Dai. Dai has remained pegged to the dollar since 2017, when it was originally created.
Founder and CEO of MakerDAO, Rune Christensen, explained the benefit that FACTOR-805 offers, calling it “a breakthrough.”
“It’s a powerful example of how to unlock more value from investments by bringing real world assets to the blockchain. With Dai, investors get the speed, security and efficiency of a cryptocurrency without the volatility that typically defines the space.”
Todd Lippiatt, co-founder and CEO of Fluidity Factora, added,
“We believe in the Dai stablecoin and are pleased to incorporate it into FACTOR-805. MakerDAO is an amazing project whose technology provides an essential component to the expanding token ecosystem.”
This type of token will require investors and issuers to buy-in to make this product into a realistic option for the mainstream financial market. After buying in, the market’s gradual evolution with stablecoins and blockchain technology would end up creating a simple system that streamlines the entire process of transferring ownership.
Venture capitalist Bill Tai explained,
“Transparency allows liquid markets to emerge with the confidence they deserve. Factora’s efforts provides the necessary components to build a comprehensive token ecosystem for mainstream adoption.”