We are pleased to announce yet another partnership this week, this time with Danish fintech startup ARYZE. You may know them as the guys behind the Danish Stablecoin eKroner, but in Denmark, ARYZE is well recognized in the fintech space for their efforts issuing fully redeemable stablecoins backed by traditional assets.
Their innovative solutions bagged them the “Best New Danish Startup” at the 2018 Copenhagen Fintech Week in June, adding to previous awards in their trophy cupboard such as the Venture Cup Denmark Fintech Winner and Innovation Fund Denmark Grant Winner.
Crypto as alternative money: why we’re not quite there yet
One of the main obstacles to mainstream adoption of cryptocurrency has been its notoriously extreme volatility. The idea of using cryptocurrency as alternative money with full control and directly transacted is a great one but the fact is, crypto is still valued in fiat terms. Merchants still operate on fiat-based models and users spending crypto are still paying on fiat-based terms.
So volatility — and the extreme one of crypto — makes it extremely difficult to settle payments, as demonstrated by this now-famous meme from Twitter, at a time when Bitcoin price was shifting by hundreds of dollars in the space of minutes:
This isn’t necessarily a flaw of cryptocurrency as a store of value, it simple reflects its status as an emerging market yet to fully mature and stabilize.
Stablecoins: helping people and business transfer value over blockchain
Stablecoins are cryptocurrency that directly address the volatility issue for crypto. They are typically pegged to the value of another stable and recognized asset, such as how Tether (USDT) is pegged to the US dollar or even how like Venezuela’s Petro purports to be pegged to oil.
ARYZE recognizes the need for stablecoins as a way to bridge the old and new, combining the properties of traditional currencies with those of cryptocurrencies.
Its first creation, eKR, sets the standard for a tokenized currency that has a predictable value (linked to the Danish Kroner) just like traditional money, yet thanks to blockchain is superior in being cryptographically secure, can be moved around globally without transaction fees, and programmable with smart contracts.
Like the eKR, all future currencies planned for creation on the ARYZE platform will be backed by a recognized asset and fully redeemable for their underlying value.
ARYZE CEO Jack Nikogosian explains that ARYZE is all about “creating an amazing product” for all cryptocurrency stakeholders:
“For users, we create a unique, modular and customisable paying experience. For businesses, we create large saving opportunities by utilising this new technology on a digital platform, with a variety of analytical tools. This is all made possible by our programmable, stable currencies.”
AmaZix CMO Kenneth Berthelsen spoke of how ARYZE, like AmaZix, had faith in the future of crypto and blockchain and the role they will play in ushering in the fourth industrial revolution:
“To achieve this future, crypto must be an easily usable product for typical people and businesses, allowing users to seamlessly interact between the old and new worlds of finance. We believe this is precisely what ARYZE will work towards.”
To learn more about ARYZE and their work in creating an ecosystem of stable cryptocurrencies, visit their website at https://aryze.io/ or join their growing community on Telegram, Twitter and Facebook.
Curious about what AmaZix can do for you?
We’re always on the lookout for another exciting project to work on. If you’re working in the crypto space and planning an ICO, or just want help managing your communities, we’d love to hear from you.
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