Capricorn Protocol, a multiple-asset-backed stablecoin project for blockchain platforms, has announced its partnership with the Malaysia-listed company MQ Technology to reshape existing market rules. The agreement was officially signed at an offline meeting in Viva Shopping Mall and set up by Capricorn Protocol to discuss the fall of TerraUSD (UST) and address the challenges of the stablecoin market. Hopefully, the agreement will make the currently downtrodden sector more convenient for enterprises and individuals alike. 

The collaboration with MQ Technology is valued at about $200 million. 

“We, Capricorn Protocol, are adopting a more convenient way by providing more convenient channels for enterprise financing efficiently and more safely, and integrating with diversified assets, using blockchain technology to fill in the gap,” said Bryan Teh, CEO of Capricorn.

“Under the COVID-19 epidemic, the vulnerability of enterprises is further revealed [in] facing a shortage of funds [and] encountering the problem of high-financing thresholds. After completing all [of] the credit assessment processes, the time for financing applications is too long that the enterprises are often unable to get immediate help,” said Terence Cheah, executive director of MQ Technology. “The partnership with Capricorn definitely offers us more choice[s] by using its lending protocol, which takes the traditional financial assets on the chain as [a] value support and operation medium through NFT technology[,] giving full play to its own advantages and [empowering] traditional businesses.”

Details of the offline Capricorn Protocol meeting 

During the meeting, MQ Technology and Capricorn Protocol reaffirmed their intent to maximize benefits by instituting a strategic and straightforward partnership to upscale industry progress. Furthermore, the Capricorn Protocol team engaged the guests in a lively conversation that bordered on the recent happenings in the stablecoin market. 

Regarding the impact of the infamous incident on the nascent stablecoin market, Capricorn Protocol suggests collateralized stablecoins as the way forward. Citing Capricorn Protocol as a perfect example, the team revealed its stablecoin CUSD is collateral-backed. The platform has highlighted a valid mechanism, user confidence and sufficient collateral as the pillars of a sustainable stablecoin project, and it’s the template Capricorn Protocol’s infrastructure is built on. 

Based on this, CUSD will have adequate credit, and the underlying assets will possess higher capital utilization efficiency. Additionally, funds invested in Capricorn will receive higher returns. 

The Capricorn Protocol team anticipates regulatory attention. The team has years of experience in the banking industry, and a few members are familiar with legal and financial laws and have solid compliance compatibility. Capricorn Protocol is well-prepared to accelerate the next stage of stablecoins amid regulatory attention.

Capricorn Protocol understands the need for stablecoins in the crypto market. While Bitcoin and Ether are ideal payment methods, Capricorn is cheaper and faster. The high volatility of Bitcoin risks users losing funds, making it inconvenient for payments.

“Of course, everything is not easy. It takes time to happen. During this period, we will face many challenges. For example, the market needs time to verify the mechanism of Capricorn, build confidence in Capricorn and [reduce] higher barriers to entry [with] stricter regulation,” Teh said, adding:

“But even with all the visible and unseen difficulties of the track, someone has to start the race. In the past few years, we have seen the rise and widespread use of stablecoins such as Tether , USD Coin , and Frax, and we have also seen players such as UST, Ampleforth (AMPL), Basis and ESD that have fallen on this path. With so many successful experiences or failures for us to learn from, and the advantages of our team’s experience and resources in the fields of finance, law and compliance, I believe that Capricorn can successfully occupy a place on this track.”

Capricorn Protocol aims to introduce a new era, akin to the internet, where collateralized stablecoins are the go-to coins. This partnership with MQ Technology will pave the way for reshaping the market.

About Capricorn Protocol 

Capricorn Protocol is a multi-asset-backed protocol with support from an array of assets. Leveraging smart contracts and decentralized finance, Capricorn issues the collateral-based coin CUSD, providing lending services based on the token. By adopting an advanced issuance mechanism, Capricorn Protocol guarantees users an equivalent of one-for-one for CUSD. The protocol hopes to continuously expand and push for global adoption of the collateral-based coin. 

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  • Company: Capricorn Protocol 
  • Website: capricorn.fund

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