Anchor as a Whitelabel Solution for the Digitalization of Assets
The digitization of assets is a process in which the rights to an asset are converted into a digital token on a blockchain. Ownership rights are transmitted and traded on a digital platform, and the real-world assets on the blockchain are represented by digital tokens.
The concept of a token-based economy is rapidly gaining widespread acceptance and fundamentally improving the way transactions are done across many industry sectors at the government, business, and individual level.
Why digitize assets?
The digitization of real-world assets into tokens on the blockchain unlocks their value, accelerating the exchange of value and ease of transaction, and making them more accessible and attractive to buyers.
Transferring or selling assets like real estate, gold, energy, minerals, agricultural products, securities, carbon credits, or fine arts is difficult and places a great deal of burden on both sellers and buyers. Just to trade a private asset, the seller and buyer must go through a lengthy and expensive process involving lawyers, accountants, etc., just to put a signature on a piece of paper to establish ownership and rights.
Public markets are more efficient in that they have electronic records of ownership, but it is still not a digital item. Trades require multiple entities to settle each transaction across ledgers. Those public platforms are expensive and inefficient, with a very limited launch capacity.
Converting a physical asset into a tradeable digital asset on a blockchain platform offers a higher degree of liquidity and reduces the entry barriers for private investors in asset classes dominated by high net worth individuals and institutional investors.
Security tokens provide a master set of documents and smart contracts to define the rights of any token holder. A blockchain keeps a record of who owns each token, replicated in consensus, so no one entity controls the ledger, thus eliminating the risk of manipulation.
In summary, the advantages of digitizing assets include increased liquidity, efficiency, cost, security, post-trade streamlining, asset prices, fractional ownership, speed, global access, new financial products, business models, and more.
Introducing a stable infrastructure to “anchor” the digitization of assets
Anchor offers a whitelabel solution for individuals, businesses, and governments that seek to digitize their assets in order to participate in and reap the benefits of a token economy. We have developed a technological stack that allows the stable tokenization of any real-world or virtual asset.
Our whitelabel solution leverages the same core pillars of stabilizing architecture as the Anchor stablecoin (ANCT), offering users long-term price stability, preservation of value, and protection from inflation.
The core components of Anchor’s whitelabel solution includes:
- The Monetary Measurement Unit (MMU): A stable and predictable value peg reflecting global economic growth, based on a dynamic basket of currencies, and similar to the International Monetary Fund’s (IMF) Special Drawing Rights (SDR), but apolitical, dynamic, and resilient to volatility and external market conditions.
- Price Stabilization Mechanism: An algorithmic token supply regulation that maintains the price of the asset in alignment with the MMU value peg.
- Token Design: Customized development of a digital asset to fit the needs of the project, and designed to be inherently stable leveraging the MMU value peg and algorithmic price stabilization mechanism.
- Digital Wallet: The Anchor digital wallet allows participants in the token economy to safely and seamlessly purchase, sell, and transfer whole and/or fractional ownership of assets with ease of liquidity at any time.
- Governance Model: The governance model will provide a transparent validation system and consensus by stakeholders in the project with the aim of maximizing value for all participants.
- Blockchain-based Solution: Allows for tracking and transparency of all transactions.
Similar to how Bitcoin was the first application of blockchain technology, the Anchor stablecoin (ANCT) is the first application of the MMU. Any currency, commodity, or other real-world assets can be pegged to the MMU and leverage Anchor’s algorithmic price correction mechanism to remain stable.
By leveraging the sustainable and predictable growth trend of the global economy, the MMU’s value steadily appreciates over time and remains independent of fluctuations, inflation, crises, and other various economic scenarios. The MMU allows expression of commodity value through a stable measurement unit that uses real-time data by tracking various macroeconomic indicators to create the most accurate measure of value that exists in the world today.
By using the MMU as a universal transformator of value combined with the inherent stability of our algorithmic model and other core components in Anchor’s technological stack — businesses, governments, and individuals can digitize any commodity, trade them as a digital asset, control their supply, and govern price changes internally.
Available for public testing on our website, The MMU Simulator demonstrates how the MMU’s value expressed in Anchors (ANCT) compares to the USD and 18 other widely used fiat currencies. The simulation shows how the MMU remains stable and steadily appreciates over time, while fiat currencies fluctuate and inevitably depreciate in the long-term.
Our proof of concept is evident from the exchanges we are listed on, Liquid and IDEX, as well as our track record on CoinMarketCap. Since our token’s launch in September 2019, regardless of the increase or decrease in demand, Anchor (ANCT) has maintained its price stability. Now, others can take advantage of our infrastructure to preserve the value of their assets and join the token economy with our whitelabel solution.
Peruse our whitepaper to learn more about the MMU, our price correction mechanisms, and other core components of Anchor’s infrastructure.
Interested in finding out if our whitelabel solution is right for the digitization of your assets? Email us at [email protected] and someone from our team will be happy to connect with you!
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.
Title photo by Watchara Ritjan, Shutterstock.