An anchor connects the AiBlocks network to the traditional banking system. What it does is that it tokenises assets, giving it a digital form and making it easier to transact. An anchor provides on/off ramps as they power apps and services that use AiBlocks to provide borderless access to financial infrastructure. Read on to find out more.
What is Anchor?
Traditionally, banking systems don't integrate with each other. Even if they do, the conversion and transaction fees are really high. This is the case for SWIFT.
In certain transactional cases, the person sending the value through may lose up to 20% of its original transacted value. To bridge this, AiBlocks has created a system where ATC can represent fiat currencies in digital form by going through the AiBlocks network and converting it into a digital asset token that promises to keep a 1:1 value with its fiat. AiBlocks will be the vehicle of transactions between all supported currencies inclusive of sending & exchanging of values.
The Anchor capabilities
We will facilitate the moving of fiat value from the traditional system to the digital system in 2 ways.
Issue stablecoins or fiat tokens that represent 1:1 value of the fiat reserve equivalent so that users can redeem fiat again when they need it.
Provide a fiat on/off ramp - what this does is that it will vet through all applications and users to see if they are in line with the country’s AML/KYC laws, provide a platform for users to opt in and out of digital assets easily and keep the accounts in check.
These services can be provided by a single entity or 2 entities itself, which enables the token issuer to be the reseller of the digital asset.
The Anchor demand
Anchors will play a bigger role moving forward as digitalisation continues to sweep over the standard norms that are available as of now.
Upon being the critical link, connecting the traditional banking system with one that has been tokenized, anchors have created a new economic model for themselves and the market, leveraging on the demand by providing crucial services such as deposit/withdrawal fees, FX spread fees, transaction fees and seigniorage.
The business models below are just some examples of what anchors can be doing. P2P payments, API based banking-as-a-service offerings, cross border B2B transfers, remittances, international payroll, etc.
Be an anchor
Participating as an anchor is easy
Taking part in AiBlocks anchor is very easy. Absolutely no coding knowledge is required as we will take care of that part.
In the open market currently, there are many streamlined softwares that have processes in place because most of them adopt the same ecosystem standards. For more experienced providers looking for additional features, there are sets of dedicated suites of tools that are designed to help anchors launch their services easily and connect with all wallets and apps in the ecosystem. Speak to us to find out more about how you can be a part of this ecosystem.