Honour Network and MakerDAO Expand The Use Of the Dai Stablecoin In The Global Asset Management Industry
Honour Network is excited to announce a partnership with MakerDAO that leverages the expertise and technology of both projects to expand the use of Dai in the global asset management industry.
With this partnership, Global Asset Managers using Honour Network FundTech platform can accept Dai in exchange for their Asset-Backed Tokens directly, maintain their proceeds in Dai, deploy Dai to purchase assets, use Dai for distribution of income from the assets and return the residue value of the assets upon closure to the Asset-Backed Token holders. This has an enormous benefit towards reducing the need & friction of converting cryptocurrencies into fiat currency and vice versa. And also allows for a greater use of Dai in real world finance and economy.
CEO/CTO of Honour Network, Alan Lee describes “Dai is fantastic for asset managers on the Honour Network FundTech platform. We are constantly innovating to allow asset managers to manage their operations & assets better on Honour Network FundTech platform. With the use of Dai, time, friction and exchange losses are reduced greatly. It was never possible before the introduction of Dai.”
CEO of MakerDAO, Rune Christensen adds, “The Honour Network presents an exciting opportunity for asset managers and investors to begin using Dai. We look forward to showcasing the unique benefits of a resilient, decentralized stablecoin to a new audience.”
As noted by both projects, this partnership is unique because it achieves greater usage of Dai and strengthens the function of Dai. It has also allowed Global Asset Managers to use Dai to manage their funds on the blockchain without needing to rely on conversion between cryptocurrencies and fiat currency. We will see both projects to continue deliver exceptional use cases & benefits in the coming future.
In addition, Honour Network is exploring adding Asset Backed Tokens to the Dai Stablecoin System upon the release of multi-collateral Dai — a stable coin on Ethereum blockchain soft-pegged to the USD. Asset-Backed Tokens — a type of real world asset-backed tokens on Ethereum blockchain with intrinsic value backed by the underlying assets issued by regulated & licensed asset managers, can be used as one of the assets to collateralise Dai. An essential part of the multi-collateral Dai system is the inclusion of quality collateral tokens meeting the strict governance of Maker. New collateral tokens are reviewed and voted upon by the MKR holders.
Alan continues: “The Asset-Backed Tokens issued by the asset managers, who are regulated & licensed, are perfect candidates to use as assets for collateralising Dai. Asset-Backed Tokens have intrinsic value supported by the underlying assets. Such assets can be real estate, government saving bonds, precious metals or combination of different asset types etc. Holders of Asset-Backed Tokens can choose to collateralize their Asset-Backed Tokens in exchange for Dai, hence providing additional liquidity without needing to unsubscribe to the fund. Since Asset-Backed Tokens are more stable in price than Ether, used as collateralized assets will also greatly enhance the stability of Dai.”
About Honour Network: https://honour.network
We are a blockchain protocol & platform to issue asset-backed tokens and connecting global investors. Our community users earn our native tokens to maintain decentralised governance and incentive.
To achieve this, we build FundTech platform using an open source blockchain protocol developed by us (Honour Protocol), paired with its native tokens to power the ecosystem.
We have 4 mandates in our business model:
- HonourPremier connects issuers to a ready pool of global investors.
- HonourDeals uncovers quality assets & investments to investors.
- HonourConnect enables more ways for asset-backed tokens to transfer or trade.
- HonourGlobal enables anyone anywhere to access our services.
About MakerDAO: https://www.makerdao.com
