RenVM partners ICHI to launch decentralized stablecoin for BTC, DOGE, other cryptos

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TL;DR Breakdown

  • RenVm and ICHI to launch stablecoin for crypto coins.
  • Rising market for stablecoin industry is one inspiration behind the move.

RenVM, a leafing protocol providing inter-blockchain liquidity, and ICHI have partnered to make decentralized stablecoins available to the Bitcoin, Dogecoin, Zcash, and other popular cryptocurrency communities, including Ren.

RenVM announced the partnership on Tuesday in a statement sent to Cryptopolitan.

Both firms will be able to mint and govern their own stablecoin for reliable transactions, finally completing Satoshi’s vision of a peer-to-peer electronic cash system.

This is amidst a generally rising market in the crypto industry for stablecoins. The current market for stablecoins now exceeds $100 billion as traders turn to USDC and Tether as a way to reduce exposure amid declines in the prices of Bitcoin, Ethereum, and other cryptocurrencies.

Yet, these stablecoins actually put the crypto economy at greater risk by increasing the severity of these market declines. This is because cryptocurrencies are sold to mint them and that selling pressure decreases the value of these cryptocurrencies (much like selling a stock decreases the value of that stock).

ICHI’s Decentralized Monetary Authority (DMA) protocol solves this problem for the first time by enabling any crypto community to create a stablecoin that is backed by a blend of its own native coin and fiat-backed stablecoins.

This increases the demand for each community’s native coin and ensures value remains locked in the community. The new partnership announced today will enable ICHI to create a stablecoin for the popular cryptocurrencies — including DOGE, BTC, and others — that RenVM is bringing to the Ethereum blockchain.

It will enable these cryptocurrencies to be utilized for a variety of Decentralized Finance (DeFi) applications across the blockchain ecosystem.

Key purpose of RenVM, ICHI partnership

While speaking, Michael Burgess, Ren COO, said that it is a key in allowing the fluid movement of liquidity between any blockchain.

“ICHI’s protocol creates value for any stakeholder within the Bitcoin, Dogecoin, Digibyte, or other crypto communities we support by encouraging the adoption and use of these tokens and driving value back to the community in the form of yield.”

A spokesperson for ICHI, Bryan Gross, said “Stablecoins for all the utility they provide in enabling reliable transactions to compete with other cryptocurrencies and drain value from projects.”

“Until every community has complete control over its own money, Satoshi Nakamoto’s vision of a ‘purely peer-to-peer electronic cash system’ will not be realized. We are thrilled to partner with Ren to provide communities with autonomy over how to spend, invest, save and otherwise use their money to encourage the scalable and sustainable growth of DeFi.”

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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