For the first time, the capitalization of the cryptocurrency markets has exceeded $2 trillion. This is due to the rapid growth of the sector as well as the inflow of capital into digital assets.
The crypto industry market cap is still significantly lower than that of the gold market ($10.6 billion) and the market for shares ($100 trillion). Further, capital is held in productive assets by companies and corporations in the form of futures, options, and securities. These accounts have been inactive for many years and only bring modest dividends to their owners. The cryptocurrency market capitalization could grow by billions of dollars if even a fraction of this capital is moved to decentralized finance. Zam.io's solutions combine centralized and decentralized financing by doubling equity capital on the blockchain. We will explain how it works below.
What about stock-backed stablecoins It's already a reality
Small and medium-sized investors had been denied access to the stock market for a long time. Large corporations established the rules and procedures, investing billions in company securities. The development of DeFi and blockchain technologies have led to a new breed of investors, who can freely invest in blockchain projects.
The rapid rise in crypto assets' value has triggered an inflow of capital from the stock market into the cryptocurrency sector. This transferred capital is still relatively small compared to the stock market capitalization.
"We have observed the gradual transfer capital from investment companies into the cryptocurrency industry. Although it is a small percentage, this will grow every year as digital assets become more popular and accepted around the globe. We developed special blockchain protocols to allow automatic duplication equity capital in DeFiem>, says Yuri Gusev (founder of Zam.io).
Users can use the zMorgan service to transfer a portion of their capital that is locked up in company shares to cryptocurrencies. This unique tool can transform the stock market.
Imagine you have $10,000 worth of Tesla or Apple shares. If you are interested in cryptocurrency investing but don't have enough money or the funds to buy your securities, you can use the zMorgan protocol. You can use the zMorgan protocol to issue a stablecoin-based loan. This is up to 90% of your Apple shares' collateral. Yuri Gusev explains that you can use the stablecoins received to purchase other cryptocurrencies, or to invest in DeFiem>.
This allows you to transfer stock market capital quickly into the crypto sector, and vice versa. This solution also resolves many problems regarding transparency and the provision of stablecoins backed with real assets.
"Those following the stablecoin markets will likely remember the litigation between Tether, the New York prosecutor’s office and in which the court proved the majority USDT stablecoins weren’t backed by anything," stated Yuri Gusev.
Zam.io, in fact, solves the transparency problem when securing stablecoins. It also helps to duplicate equity capital on blockchain.
Zam.io has already released two stablecoins, which are tied to the US dollar or the Arab dirham.
USDZ and AEDZ initially will be supported by stablecoins BUSD and USDT. As the ecosystem grows, US dollars, dirhams, and other assets can be used as collateral in escrow account accounts.
Each USDZ will be issued with 1 BUSD or 1 USDT as collateral," explains Yuri Gusev.
Capital transfer is possible to DeFi in a matter of hours
Today Zam.io began the first steps in moving equity capital into decentralized finance. The company will soon be able to transfer billions in crypto-assets to DeFi. Zam.io is attempting to create a financial system that integrates blockchain banking (Bank 3.0), prime broker, payments, and money transfer solutions.