The capitalization of the cryptocurrency market surpassed the $ 2 trillion mark for the first time. This reflects the rapid development of the sector and the influx of new capital into digital assets. Still, the market capitalization of the crypto industry remains many times smaller than the capitalization of the gold market ($ 10.6 trillion) or the public equity market ($ 100 trillion). What is more, capital is trapped in productive assets in corporate and corporate accounts in the form of stocks, bills of exchange, futures and options that have been inactive for years and yield modest dividends to their owners. If even a small portion of this capital goes into the decentralized financial sector, the market capitalization of the cryptocurrency will increase by billions of dollars. Zam.io’s solutions are designed to unite centralized and decentralized finances by duplicating equity on the blockchain. How it works is discussed below.
Stock-backed stablecoins? Already a reality!
The exchange was closed for a long time for small and medium-sized investors. The rules and procedures were established by large corporations that invested billions of dollars in corporate securities. However, the advent of blockchain technologies and the development of the DeFi sector have created a new class of investors who can freely invest their capital in blockchain projects.
In general, the rapid appreciation of crypto assets has triggered the influx of market capital into the cryptocurrency sector. However, this transferred capital remains relatively small compared to the total market capitalization.
“We are watching the gradual transfer of capital from investment companies to the cryptocurrency sector. While this is a small percentage, it will increase every year as the digital asset market grows and is accepted worldwide. We have developed special blockchain protocols that enable the automatic duplication of equity in DeFi, ”says Yuri Gusev, founder of Zam.io.
Thanks to the zMorgan service, users can transfer part of their capital locked in company shares in cryptocurrencies. This is truly a unique tool that can transform the stock market significantly.
“Imagine you own $ 10,000 worth of Apple or Tesla stock. You want to try investing in cryptocurrencies, but you don’t have the money to invest and you don’t want to sell your securities. In that case, you can use the zMorgan protocol, which is able to issue a stablecoin loan worth up to 90% of the amount of collateral secured by your Apple shares. You can then use the stablecoins you receive to buy other cryptocurrencies or invest in DeFi, ”explains Yuri Gusev.
With this solution you can quickly transfer market capital to the crypto sector and vice versa. It also solves several problems related to transparency and the provision of stablecoins that are backed by in-kind assets.
“Those who follow the stablecoin market will likely remember the legal battle between Tether and the New York City Attorney’s Office in which the court proved that the majority of USDT stablecoins were unsupported,” said Yuri Gusev.
In fact, Zam.io solves the problem of transparency in securing stablecoins and helps duplicate equity on the blockchain.
Zam.io is already releasing two stablecoins that are linked to the US dollar and the Arabic dirham.
“First of all, USDZ and AEDZ are supported by other stablecoins (BUSD, USDT). As the ecosystem evolves, US dollars, dirhams, and other assets are used as collateral in escrow accounts.
For every USDZ issued, 1 BUSD or 1 USDT is recorded in the log as security, ”explains Yuri Gusev.
Transferring funds to DeFi is a matter of time
Zam.io is taking the first steps today to move equity into the decentralized financial sector. In the near future, the company will be able to transfer crypto assets worth billions and place them in DeFi. Overall, Zam.io is working to build a financial ecosystem that integrates blockchain banking (Bank 3.0), prime brokerage, payments and money transfer solutions.