Universal Protocol Alliance announces new stablecoin ‘Universal Dollar’
Wed, 10 Oct 2018, 07:21 am UTC
The Universal Protocol Alliance, a recently launched coalition of blockchain organizations, has officially announced its own stablecoin, called the Universal Dollar (UPUSD).
In August, Uphold, Brave Software, Cred, Blockchain at Berkeley and FBG Capital, came together to launch the Universal Protocol Alliance with the objective of accelerating the adoption of blockchain and cryptocurrencies.
According to the official release, the UPUSD is a fully-transparent, digital asset that is collateralized 1-to-1 with U.S. dollars to be held at the U.S. domiciled, FDIC-insured banks. It will offer users access to a quarter-billion-dollar line of credit; an annual rate of interest of between 2 and 5 percent; and enable holders to access flexible loans with single-digit rates of interest.
“As part of this initiative, any supported digital asset held at Uphold could be used to earn interest [subject to regulatory requirements] and qualify the user for a secured line of credit,” it said. “The Universal Dollar can be used to earn interest with Uphold Earn, and to access flexible lines of credit with Uphold Borrow.”
Underpinned by the reserve management developed by Uphold, the UPUSD introduces many of the user safeguards and benefits expected of conventional financial assets, the release said. This includes a fully reserved, built-in loss recovery and optional custody of private keys; inheritability feature allowing users to nominate a beneficiary who can “call” the asset on account dormancy; and a “detachable” wallet that reduces exchange risk, among others.
Alongside the UPUSD, the alliance said that it will soon launch Universal Bitcoin (UPBTC) as an ERC-20-compatible, fully-reserved and interoperable token.
“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,” said JP Thieriot, CEO of Uphold.
Recently, PwC entered into a partnership with Cred, one of the founding members of the Universal Protocol Alliance, to provide its expertise to the stablecoin project.
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