Dutch company AllianceBlock announced the launch of a decentralized capital market on the Edgeware smart contract platform. It becomes the world’s first globally compliant decentralized capital market.
Edgeware is a blockchain ecosystem built on Substrate that is self-governed (community-owned), distributed, and self-sustainable.
In other words, this blockchain operates with on-chain governance and a collectively managed treasury. Edgeware blockchain enables users to fund the chain’s development, and teams to build projects.
The Edgeware blockchain is the oldest and one of the few mainnet Polkadot ecosystem smart contract platforms.
AllianceBlock and Edgeware Create New Solutions
It enables teams like AllianceBlock to fully test and deploy on a variety of development and mainnet Substrate chains. Edgeware’s value alignment and technical foundation make it possible to model and test best practices off the chain’s own governance.
The AllianceBlock Protocol being launched is a chain-agnostic and decentralized Layer 2 that connects traditional with decentralized finance and automates the process of converting any digital or crypto asset into a bankable product
The novelty about AllianceBlock’s protocol is that it brings unprecedented tools to the Substrate-based Wasm contract palette, including NFT contract standards, Defi and DAO primitives to their peer-to-peer market.
These tools allow optimal interoperation with the latest in digital organization and governance and their team’s background across both financial worlds, DeFi and traditional.
More Ways for DeFi to Grow
With this launch, AllianceBlock is aiming to further empower collectives and individuals to lend and fund across the network.
This new protocol will bridge DeFi and traditional finance (TradFi) to bring the benefits of both areas to each other, and create the first decentralized capital market.
AllianceBlock’s long term objective, is to become the bridge between traditional finance (TradFi) and DeFi by means of globally compliant platforms and tools.
The decentralized blockchain-agnostic Layer 2 AllianceBlock Protocol will provide a compliant gateway, secure and regulated, to attract billions of dollars present in TradFi into DeFi. This investments migration will enable DeFi platforms and protocols to be adopted by a much larger audience.
An Online Source of Liquidity
AllianceBlock is launching the protocol that will bridge DeFi and traditional finance (TradFi) to bring the benefits of both areas to each other, and create the first decentralized capital market.
AllianceBlock’s CEO Rachid Ajaja explains the company’s objective in his own words:
“Edgeware’s vision of building a community owned, decentralized platform with a focus on on-chain governance is perfectly in line with our own. We are seeking to build a new financial infrastructure that takes advantage of innovative technology, and Edgeware’s community treasury, facilities for DAOs, and bridging of digital and physical entities are important parts of linking DeFi with traditional finance.
We are excited to be integrating our products into Edgeware, and look forward to collaborating more moving forward.”
Moreover, the AllianceBlock Protocol reflects how traditional finance would be built today with actual technology.
The protocol incorporates new technology such as DeFi, though refined into a TradFi friendly manner. This interconnection facilitates services required by both spaces.
These days, compliant derivative products can easily be created out of almost any DeFi solution, such as utility tokens, security tokens, cryptocurrency, synthetic, crypto portfolio, etc.
A Range of Options for Financial Markets
Structured crypto products can now be created in a compliant manner, these products include Credit Linked Notes (CLNs), trackers / synthetics, derivatives, discretionary portfolios, static investments, and structured loans.
The undeniable rising interest of traditional financial institutions in the decentralized space is here to stay.
Connecting the gap between the worlds of traditional and decentralized finance will unlock substantial value pools for both worlds, allowing TradFi to benefit from the sophisticated on-chain technology, and DeFi benefitting from the experienced regulatory framework in TradFi.
Bridging DeFi with TradFi will open the door to a broader group of individuals to a significantly greater level of accessibility to capital. This will trigger a positive spiral upwards resulting in the long term in a more inclusive and participatory global economy.
AllianceBlock developed the tools to make all digital assets capable of being investable, bankable, fungible, and accessible to the entire regulated finance industry.
In a nutshell, AllianceBlock, by giving birth to the first decentralized capital market is opening the doors of Decentralized Finance to the world.