In this digital world, there are several rising use cases with innovative trends. Such as security mechanisms, blockchain networks, decentralization, and utilization of cryptocurrencies for trading. There are many prominent cryptocurrencies in the market, particularly bitcoin, the price changes once a day.
As we know bitcoin is the first digital currency and gave us new perspectives on payments and trading. Likewise, stablecoin entered the market with the primary aim of boosting cross-border payments and remittance. But stablecoins first launched in 2018. But now, it has become a prominent type of digital currency among investors.
In this current time, the usage of Stablecoins is comparatively equal to the usage of prominent altcoins. It is due to the impacts and benefits of Stablecoins in the crypto marketplace. Also, many individuals started to use Stablecoins for their payments and other transactions. That’s why startups, enterprises, and businesses prefer stablecoin development from the best stablecoin development company.
This article navigates to the complete guide on stablecoin development. This guide covers the types, benefits of stablecoins, stablecoin development services, and more. So now, let us start this exclusive guide with…
What are Stablecoins?
Stablecoin is the most modern thing in crypto at this moment. A stable coin is a digital money and the cost is completely pegged to a true resource like gold or the dollar. Stable coins are non-volatile and regulated.
In general, Stablecoin is a digital form of money whose values are connected to a certifiable resource. They are significantly more settled than ordinary cryptographic forms of money. This is because their qualities and values are pegged to different resources. There are more than 200+ stablecoins are available in the market, but some are popular among investors. Such as USTD, DAI, TUSD, and Paxos Standard. You might have a doubt: where to buy a stablecoin?. You can buy stablecoins in any reputed crypto trading platform.
Stablecoins come in many types right from crypto-collateralized to fiat-collateralized. Experts in the crypto space say that stablecoins might pay back more than 40 times the original investment. As the name suggests, the stability of a digital currency is maintained. Thus, it results in profiting your business to the next level.
How Does Stablecoin work?
The price of the stablecoin will change based on the value of fiat currencies. As I already mentioned in this article, stablecoins are low volatile. Also, they don’t have massive fluctuations like altcoins. But you should note that earning profits might take a long time. You can trust a stablecoin more than any altcoins because of its backed assets. The working process of stablecoin involves two kinds of processes. One is the purchase process and another one is the redeem process.
Here a user will submit the wire to a trusted company with the crypto wallet information. Then the trusted company will send a signal to the stablecoin with an escrow agreement. Once the funds are verified, the corresponding stablecoin is sent to the user’s wallet instantly.
If you want to redeem your stablecoin, then a KYC/AML check needs to be conducted. Only after the KYC process, you can redeem your stablecoins.
The working process will be changed based on the type of stablecoins. Currently, there are different types of stablecoins development offered by companies. So, now let us see them…
Types of Stablecoin Development
Here we list the different types of stablecoins that are existing in the crypto marketplace.
i. Fiat-collateralized stablecoin development
This kind of stablecoin is completely pegged to fiat currencies like the USD, Euro, or any other fiat currencies. It is usually backed at a 1:1 ratio. This means that for each stablecoin is equal to one unit of fiat currency. Let us see a small example of the most popular stablecoin, Tether. So that you can have clarity on fiat-collateralized stablecoin. Tether is completely pegged 1:1 with the USD. So one Tether is equal to 1 USD.
One of the main disadvantages of fiat-collateralized stablecoins is, they are not transparent to everyone. However, users require trust to trade in these types of currencies. Also, there is no way to inspect whether the exchanges are following protocol or not. It can be the simplest kind of stablecoins to understand. But they limit the true potential of cryptocurrencies. Also, they act only as proxies for fiat currencies.
ii. Crypto-collateralized stablecoin development
These currencies are completely pegged to other digital currencies. Here, everything is operated on the blockchain. So it is more transparent and also has open-source codes. Thus, it can be completely operated in a decentralized manner. But these stablecoins are also more complex to understand and also lack popularity.
crypto prices are subject to volatility. So these kinds of stablecoins are often pegged by a diversified reserve of cryptos that can remain stable. Here the ratio of collateralization increases. For example, crypto-collateralized stablecoin is pegged with 1:2, for each stablecoin. So the cryptocurrency is worth twice the value of stablecoins. In other words, we can say that stablecoin would be collateralized at 200%…
If the price of the collateral cryptos falls by 25%, the stablecoins will still retain their original value. But the value of the collateral is still more than the value of the stablecoins. The most popular crypto-collateralized stablecoin is Dai. which is created by MakerDAO. whose face value is pegged to the USD, but it is collateralized by Ethereum.
iii. Uncollateralized stablecoin development
This uncollateralized stablecoin comes with the open-source code that is visible and auditable by everyone. To understand how this stablecoin works, let us see a small example. Consider that you create a new currency and peg it to the USD. which means 1 new stablecoin is equal to $1. If the value of your stablecoin goes above $1. Then it indicates that the demand for your new stablecoin is high. So the algorithm increases the supply of your coin by printing more stablecoins. It proceeds until the demand meets the supply.
If the value falls below $1, then it indicates that there are many stablecoins in circulation and the demand is low. So this stablecoin is completely programmed to contract the number of coins in circulation until the supply meets demand. So these stablecoins are also called Algorithmic Stablecoins. Because they are programmed with open code and can generate trust in the currency. Also, these are the most transparent and decentralized stablecoins.
iv. Commodity-Backed Stablecoin development
These stablecoins are backed by real-time assets. Such as precious metals, gold, real estate, and oil. These stablecoins have the potential to appreciate simultaneously with the increase in the value of their underlying assets.
One of the great examples of Commodity-collateralized stablecoins is Digix. This stablecoin is completely backed to gold. This means 1 Digix is equal to 1 gram of gold on the Ethereum network. Another best example of this stablecoin is Tiberius Coin (TCX). But it is backed by the combination of 7 precious metals that are commonly used in the hardware tech field.
Ok, now let us see…
How to Create your own Stablecoin?
Stablecoin is usually developed by pegging and other development processes. They can be completely backed in the USD or other fiat currencies as per your business requirements. But it is far similar to the currency pegs that are mostly done by the popular central banks.
The biggest challenge in developing a unique stablecoin is, you need to choose the best stablecoin development company. Also, the chosen company must be expert in offering all sorts of stablecoin development services. So by choosing the best stablecoin development company, they will assist you in creating your own stablecoin in a hassle-free manner.
Highlights of Stablecoin Development
There are some highlights of stablecoin development. They are mentioned below.
- No Volatility
- Financial enclosure
- High Liquidity
- Increased Revelation
- Authority Token
- 100% Backed
- Developed using advanced Blockchain Technologies
Benefits of Stablecoins
Here we list some of the hidden benefits of stablecoin.
- Though it is still in its beginning times, stablecoins have great prominence in the market. So developing an own stablecoin now will be a beneficiary.
- Stablecoins are replaceable for fiat currencies.
- Streamlining frequent and P2P expenses
- Quick and moderate settlements for transient laborers
- Assurance from neighborhood money crashes
- Convenient payment instrument
- Accumulates the value
- Significant market volatility
- Provide decent scalability
- Supports decentralization and privacy
- Serves as a value measure
- Liquidity will be high
- High transparency
- Enhanced crypto trades
Right now, stable coins are exceedingly exploratory. It may be an effective execution in the cryptocurrency world. So now, let us see…
Best Stablecoin Development Services in the Marketplace
1. Stablecoin Consulting
By using a stablecoin consulting service, you can have the perfect business strategy to build, deploy, and market your stablecoins.
2. Whitepaper Drafting
This service helps you to draft a clear and easy-to-read whitepaper for stablecoin. It covers all the crucial details about the project and also helps investors make the right decisions.
3. Stablecoin Creation
This service helps to create the desired type of stablecoin development. Such as fiat-collateralized, crypto-collateralized, commodity-collateralized, and uncollateralized.
4. Stablecoin Marketing
By using this service, you can get the best growth strategy that will help you reach more stablecoin investors. There are many marketing activities like PR outreach, email marketing, social media marketing, and more.
5. Payment & AML/KYC Services
This payment service can expand stablecoin offerings with multiple payment options. It includes AML/KYC services that allow you to cross-check on the profiles of investors.
6. Community Support Management
There will be a dedicated team that provides community support, instant chats, and crypto forums. The expert team will instantly reply to investors queries
If you want to develop a superfine stablecoin, then you need to go for the top-notch stablecoin development company. Now, there will be a question that rises on your mind like…
Where can I Get the Best Stablecoin Development Services?
When it comes to the best in stablecoin development, Icolone ranks in the top position. Icoclone, one of the award-winning stablecoin development companies in the blockchain industry. We offer a blockchain-empowered platform that offers consent for the formation of stablecoins. We are well-experienced in offering the best stablecoin development services with the utmost perfection. Icoclone has in-depth experienced developers and an expert team to complete the customer’s project within the given time frame. Many startups and entrepreneurs benefited by using our stablecoin development services.
Our reliable stablecoin development services are listed below.
- Fiat-backed stablecoins Development
- Crypto-Collateralized Stablecoins Development
- Non-Collateralized Stablecoins Development
- Multi-Payment Integration
- Automated AML/KYC Services
- Community Support Management
- 100% Backed stablecoin development by assets
If you are a person looking to develop a unique stablecoin. Then connect with us and we are here to assist you right from scratch to deployment at an affordable price.