Why we’re choosing USDC stablecoin for traders to use on Upstream over other digital currencies
Why Upstream exchange will accept both digital currency and traditional bank payments
By Vanessa Malone
We’re getting close to the official launch of Upstream, our next generation exchange and trading app for digital securities.
On the surface, Upstream offers investors of all levels direct access to a regulated stock exchange through a userfriendly trading app.
Under the hood, Upstream introduces what we believe to be the future of trading featuring increased transparency and investor protections enforced using blockchain technology. These innovations include an investor-driven, public orderbook with best bids and offers transparently displayed in real-time on the Ethereum blockchain, digitally signed and logged transactions, and no predatory market practices like short selling or routing order flow.
As a blockchain-powered exchange, it was important to make our exchange accessible to the blockchain community through digital currency. That’s why we will allow Upstream traders from around the world to invest in crowdfunded securities, digital SPACs, athlete/celebrity ventures and other unique asset classes using both traditional bank payments and USDC stablecoin.
Why we chose USDC stablecoin
A stablecoin is a digital token backed by real-world assets. USDC is a leading stablecoin that has a 1:1 value with the US dollar which helps mitigate the volatility inherent in traditional digital currencies like Bitcoin, Ether, etc.
USDC is overseen by the Centre consortium which is made up of regulated financial institutions like Circle and Coinbase. The dollars backing USDC are held in reserve bank accounts subject to regular audits in order to maintain its credibility.
Why we chose USDC over other digital currencies
We believe USDC will enable Upstream traders to transact using digital currency without having to worry about the intense highs and lows of Bitcoin or Ether, a reassurance that has proven valuable.
Let’s take a look at Bitcoin just over the last few weeks. After reaching record highs nearing $65,000 last month, Bitcoin dropped to less than $50,000¹ May 12, 2021, after Elon Musk tweeted that Tesla would stop accepting Bitcoin due to potential environmental damage. This week, Bitcoin dropped again to $37,000² after China made an announcement banning financial institutions from providing cryptocurrency-related services. Other cryptocurrencies followed Bitcoins downward trend following these announcements.
Seeing how the value of digital currencies could change by thousands of dollars in the matter of days and weeks, it’s easy to see the benefits USDC could have in protecting our investors from this type of volatility.
The future of trading on Upstream
We believe Upstream represents the next generation of trading, where traditional and blockchain investors can trade securities with digital currency and traditional bank payments. Our advanced technology integrations make it possible for USDC traders to enjoy a streamlined USDC off-ramp back to popular cryptocurrency exchange platforms like Coinbase.
Additional features for Upstream traders include:
- Direct access to a regulated stock exchange through an intuitive trading app
- Real-time trades driven by the Upstream trader community & instant settlements
- Biometric-secured transactions with shares controlled directly on the traders’ smartphones
- Transparent market and orderbook enforced by blockchain technology
- Upstream maintains certain insurances and bankruptcy protections for cash and securities held by Upstream Members. Details here.
For issuers, listing on Upstream gives them access to a global investor base who can trade company shares with digital currency and traditional bank payments. Be sure to stay connected so that you can be one of the first to learn about Upstream’s upcoming launch. Visit us here.
Sources:
About Upstream:
Upstream, a MERJ Exchange Market, is a fully regulated global stock exchange for digital securities. Powered by Horizon’s proprietary matching engine technology, the exchange will enable investors to trade shares in SPACs, high-growth startups, and other unique asset classes directly from the app. Interested issuers can reach the team at hello@upstream.exchange.
About MERJ:
MERJ Exchange operates Upstream as a fully regulated and licensed integrated securities exchange, clearing system, and depository for digital and non-digital securities. It is an affiliate of the World Federation of Exchanges, recognized by HM Revenue and Customs UK, a full member of the Association of National Numbering Agencies, and a Qualifying Foreign Exchange for OTC Markets in the US. MERJ is also a member of the Sustainable Stock Exchanges Initiative.
About Horizon:
Horizon is a fintech company that builds and powers global securities exchanges with an integrated suite of software for compliant issuance, management, and secondary trading of securities. Our in-house solutions combine Wall Street and Silicon Valley to power the next generation of securities offerings and trading in the U.S. and globally: https://www.horizonfintex.com/.
Disclaimers:
+ USDC funds are custodied pursuant to the Liechtenstein Law on “Tokens and Trusted Technology Service Providers” as passed in Blockchain Act on October 3, 2019 and/or MERJ Depository and Registry Limited: Licensed securities facility (License No. SF001).
Upstream is a MERJ Exchange market. MERJ Exchange is a licensed Securities Exchange, an affiliate of the World Federation of Exchanges and full member of ANNA. MERJ supports global issuers of traditional and digital securities through the entire asset life cycle from issuance to trading, clearing, settlement and registry. It operates a fair and transparent marketplace in line with international best practice and principles of operations of financial markets. Upstream does not endorse or recommend any public or private securities bought or sold on its app. Upstream does not offer investment advice or recommendations of any kind. All services offered by Upstream are intended for self-directed clients who make their own investment decisions without aid or assistance from Upstream. Customers must comply with applicable law of their own jurisdiction. By accessing the site or app, you agreed to be bound by its terms of use and privacy policy. Company and security listings on Upstream are only suitable for investors who are familiar with and willing to accept the high risk associated with speculative investments, often in early and development stage companies. There can be no assurance the valuation of any particular company’s securities is accurate or in agreement with the market or industry comparative valuations. Investors must be able to afford market volatility and afford the loss of their investment. Companies listed on Upstream are subject to significant ongoing corporate obligations including, but not limited to disclosure, filings and notification requirements, as well compliance with applicable quantitative and qualitative listing standards.
THIS BLOG SHALL NOT CONSTITUTE AN OFFER TO SELL SECURITIES OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION WHERE SUCH OFFER OR SOLICITATION IS NOT PERMITTED. US INVESTORS ARE NOT PERMITTED TO TRADE IN UPSTREAM LISTED SECURITIES.
