The Universal Protocol Alliance, formed by Uphold, Cred, Brave, Blockchain in Berkeley and FBG Capital, announced on October 9th, during the San Francisco Blockchain Week, the launch of a new stablecoin based on the US Dollar, the Universal Dollar (UPUSD).
With this initiative, any asset present in the Uphold platform, which offers trades in more than 30 fiat currencies, commodities such as gold and silver, as well as cryptocurrencies, “could be used to earn interest and qualify the user for a guaranteed line of credit,” according to the company.
JP Thieriot, CEO of Uphold, said the initiative would introduce conventional financial products into the cryptocurrency ecosystem and make it easier for millions of users to purchase these digital assets.
Last month the platform added the token support of its strategic partner Cred, a startup that defines itself as “a line of credit to elevate you to your potential.” About the launch of the Universal Dollar (UPUSD) stablecoin, Cred co-founder and president Dan Schatt said that “a new generation can access similarly convenient credit without such a high bar and through the simple ownership of digital assets” in reference to the traditional requirement of ownership of real estate in order to qualify for credit in the United States.
Uphold, Cred, and Brave, among others, joined forces to launch Universal Dollar (UPUSD) stablecoin
A stablecoin is a cryptocurrency that can be supported by legal tender currencies, commodities, and other cryptocurrencies, as well. The idea is based on creating cryptocurrencies with less volatility, with stable prices, by merging the best of both financial worlds. One example is Tether (USDT) which is denominated in the US Dollar and began to be traded in 2015.
Earlier this month, the London Block Exchange announced plans to launch a stablecoin linked 1:1 to the GBP, which will be called LBXPeg. On the other hand, during September the crypto exchange BitTrade announced that, in 2019, it would launch a stable currency related to the Australian dollar.
Despite all these initiatives with stablecoins, designed to keep the volatility of cryptocurrencies under control, the former principal policy advisor of the International Monetary Fund (IMF) and also a professor of economics at the University of California at Berkeley, United States, Barry Eichengreen, indicated that these types of assets do not solve the problems of cryptocurrencies market volatility.