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USDK “Fulfils” Stablecoin Market Needs – Report


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Influential blockchain advisory group Zexmon Group has emphasised the importance of stablecoins in helping to solve future finance market problems, and rates USDK for its transparency and reserve currency backing.

Following the influential Jackson Hole Economic Symposium Conference, held in August, Zexmon Group released a paper, Analyzing the Development of Stablecoin from the Jackson Hole Economic Symposium Conference.

In it, the group argues on the importance of stablecoins being used as a measure by central banks globally to stem the threat of a so-called ‘liquidity trap’, which could see people horde fiat currencies, instead of spending it, creating “pressure on the monetary system”.

A crowded market

The stablecoin market is currently dominated by Tether (USDT) a stablecoin created by iFenix, the owners of digital asset exchange BitFenix.

While popular with cryptocurrency traders, who use it to protect their investments when the market enters a downward trend, Tether is not without its problems and critics.

It has faced pressure this year over its operations and whether or not its claim all USDT are backed by “physical” dollars is true.

It faced scrutiny earlier this year after social media users noticed it updated its terms in a way that seemed to diminish the claim every dollar of USDT was fully 1-2-1 backed by physical money.

On the contrary, Zexmon’s report highlights the benefits of USDK, which it concludes “wins market trust” over USDT.

“At present, USDT has an absolute advantage in the stablecoin market. Yet the token’s accidental issuance and burnt, opaque audit, not fully backed by fiat equivalents, etc. have led the market to lose trust in the stablecoin,” the report says.

“Another stablecoin on the market is more trustable – USDK. USDK is a stablecoin powered by blockchain technology and US Licenced Trust Company.

“USDK wins market’s trust by offering a completely transparent background and is fully backed by fiat currency. It fulfils what the market needs in a stablecoin.”

The report says that USDK, which was created by OKEx sister company OK Link, and which is backed by US custody provider Prime Trust, is independently audited, and 100 per cent backed by fiat currency.

“When users buy USDK, USD will be deposited to Prime Trust’s account. As the account data are shared and synced between Prime Trust and OKLink, Prime Trust will confirm the depositing before transferring USDK to users via blockchain, hence USDK are 1:1 fully backed by fiat currency,” the report says.

Source of the article: https://cryptochainwire.com/usdk-fulfils-stablecoin-market-needs-report/

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