Decentralized Capital Launches Service That Brings Fiat Digital Assets to Ethereum
Decentralized Capital (DC) has officially launched its service.
The project, which is scheduled to present during International Blockchain Week’s Demo Day on Sept. 22, makes it easier for users to put fiat money onto and off the Ethereum blockchain. DC will support eight different currencies (USD, EUR, GBP, CNY, JPY, HKD, CHF, and PLN) on its launch, with plans to add more in the future.
Users can deposit Bitcoin or wire fiat currency using Crypto Capital to receive DC Assets, the project’s virtual currency secured on the Ethereum blockchain. Depending on which fiat currency was used or transferred, users will be given a coin representing that currency. For example, USD will become DUSD. GBP will become DGBP.
DC Assets are adaptable to all products or services built on the Ethereum blockchain. Since they accommodate to the ERC20 token standard, customers can use any dapp, decentralized exchange, or conduct transactions on Ethereum. As of right now, DC users will have access to Gnosis, EtherDelta, and EtherOpt when they are live. Users will also be able to add DC Assets to services like MyEtherWallet, to make it a custom token.
DC is designed as a centralized service built on the decentralized network. Meaning, it will control their assets when the situation calls for it. But as DC explains, being a centralized service is the only way they could get government-backed fiat onto the Ethereum blockchain.
“We believe this functionality is crucial to more widespread adoption as it will allow consumers and businesses to match their on-chain transactions to the currency that they use in their everyday lives,” the company adds. “That said we are taking as many precautions as possible to ensure that the funds are not at risk. The funds are held at various banks around the world, which differ based on the currency type and country in which the reserves are held. The relevant insurance varies based on the country in which the bank resides. We are looking into additional insurance like options such as bank guarantee.”
The project is driven by two brothers, Alex and Phil Wearn, CEO and COO, respectively. Using their expertise from IBM and the beginning days of Ethereum, the company plans to build a bridge between blockchain experts and novices.
“For starters we're focused on providing Ethereum users with a stable currency for use in smart contracts. This includes people who are both deeply entrenched in the community, as well as newcomers who may want to use a dapp but don't want to deal with crypto currency price volatility,” the company states in a Reddit reply.
“Our assets also help solve a lot of ‘traditional’ finance problems such as speed and settlement time for international remittance, interbank transfers, and large corporate transactions. As adoption in these areas grows so will general acceptance toward the idea of blockchain based virtual currencies.”