Zam.io announces they have developed a unique protocol, zMorgan, that can issue stablecoins secured by clients’ shares. Therefore, every stablecoin issued will have real collateral. Crypto investors, hodlers and the EU administration have started to re-consider stablecoins as a potential means of payment after the stablecoin market cap had surpassed the $125.7 billion mark in September this year.
Crypto enthusiasts might be ready to transfer their assets into stablecoins, to stabilize their profits and survive the possible October market correction without losses, but heads of states are skeptical about stablecoins and are wary of using them in daily life, given the issues with their real value.
More recently, the President of the European Central Bank (ECB), Christine Lagarde, stated that stablecoins are not at all the digital equivalent of fiat money as they have serious collateral problems. Lawsuits between the New York prosecutor’s office and the issuer of the most popular stablecoin, Tether (USDT), had once again proved that their coins are inherently worthless as they are not backed up by real collateral.
Zam.io has presented a new protocol, zMorgan, which helps address this issue, by transferring stock capital to decentralized finance. We will present the way it works in the sections that follow.
From CeFi to DeFi: How to Secure Stablecoins with Company Shares
According to the analytical resource CoinMarketCap, the daily transaction volume of USDT stablecoin exceeds $137 billion, but the number of coins truly secured by fiat money is indeterminable. Tether representatives claim that absolutely all issued USDT are backed by dollars, bills of exchange and other securities. However, upon investigation, this turned out to be untrue. In fact, millions of people use dummy coins every day.
“We have been observing problems with securing stablecoins for a long time and fully support the position of the authorities, which is aimed at tightening control over issuers of stablecoins. Users need to be sure that every USDT stored in their crypto wallet has real value. Therefore, we’ve created a unique protocol, zMorgan, that allows the issuance of stablecoins secured by stocks,”
explains George Gus, founder of Zam.io.
The zMorgan protocol is capable of issuing a certain number of stablecoins pegged to fiat currencies: USDZ (pegged to the US dollar) and AEDZ (pegged to the Emirate dirham).
How the zMorgan protocol works
In fact, the service mechanism is very simple and accessible to everyone. Let’s assume you have shares in Fortune 500 companies, which can be Tesla, Apple, Microsoft, etc. You don’t intend to sell them yet or use them to obtain a physical product but are holding them solely as a long-term investment.
If shares are worth $100,000 but investors with no money available want to try out crypto investing and plan to buy cryptocurrencies without selling stocks, they can use the zMorgan protocol, which can mint a certain amount of USDZ or AEDZ stablecoins secured by shares as collateral. In this way, each issued stablecoin will be backed by equity.
USDZ or AEDZ stablecoins can be used to buy BTC and ETH cryptocurrencies and other top coins, which can be transferred to decentralized platforms and used to issue loans and credits, while you retain your shares.
Now imagine that the zMorgan protocol is used by large companies, investment funds and banks. These entities are capable of creating stablecoins backed by stocks, gold or other assets, thereby pouring capital locked in securities and other assets into the cryptocurrency and decentralized finance sector. This will result in the rapid development of the digital finance market and the creation of a new economic environment.
“We’ve estimated the value of the stock market to be approximately $100 trillion. If at least 1% of the blocked capital in public company shares goes to the DeFi sector, the crypto market cap would increase by $1 trillion. What does this mean for cryptocurrency holders? Lightning-fast growth in the price of major cryptocurrencies, record profits, and early adoption of cryptocurrencies as an investment tool,”
explains George Gus.
All this can become a reality today!
How the stock market will change in the near future
For a long time, the stock market had remained fairly conservative and closed. The rules and regulations have not been changed for centuries in order to reliably preserve world capital among large corporations. Blockchain and cryptocurrencies will lead to the emergence of a new alternative economic system, transforming the stock markets in the future. This is what we are witnessing nowadays.
“The development of blockchain and cryptocurrencies will somehow change the stock market. We’ve already witnessed the first changes. At the beginning of summer, crypto exchange Binance launched tokenized stock trading, which was a direct challenge to stock exchanges. Trading these assets has now been suspended. Our company, in turn, is enabling the transfer of the stock market’s “dead” capital, which has been locked away in stocks for decades, in the bank accounts of large corporations and investment funds, into decentralized finance,”
explains George Gus.
As the expert describes, in the coming years there will be major transformations in the global financial sector. Traditional investors and bankers who dismiss the obvious benefits of cryptocurrencies will be replaced by young, free money holders. At the same time, blockchain technologies will overrun the world of traditional finance and alter money management approaches. Instead of static banks with huge commission fees, neo-banks which support crypto payments will emerge. Instead of unprofitable deposits, staking will take place. Instead of the usual expensive loans, simple loans on DEX could occur. The world is already moving in that direction, and these transformations have consistently proven difficult to impede.
“We understand and clearly recognize that the world is changing and the financial sector is the first to respond to such changes. Therefore, our team has created a unique service that will facilitate and accelerate the transition from a traditional economy to an alternative one. One could say that Zam.io would act as a bridge between CeFi and DeFi,”
explained George Gus.
ZamZamTechnology OÜ (registry code 14566685)
Address is Harju maakond, Tallinn, Põhja-Tallinna linnaosa, Randla tn 13-201, 10315
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