A CryDR represent real-world value of assets. It allows people to tokenize traditional asset classes and put in Blockchain decentralization, including commodities, currencies, futures, bonds and other financial assets.
A CryptoDepository Admission is basically the value of the underlying asset at Blockchain, and in the eyes of the network’s unique cryptocurrency. It was constructed with built-in rules, KYC and AML compliance. This means the token issued by network flanked real world rules, ensure compliance with regulations at all times.
Fiat CryDRs can also be used in trade, remittances and global payments.
How does it work?
It acts as a bridge between the existing financial infrastructure and crypto growing market.
Users can store traditional assets, as well as digital networks into DAO (decentral Bank). In return, users receive CryDR token that represents the value of the underlying assets held in a decentralized network. A CryDR token is created for each asset owned by the DAO.
If the user wishes to withdraw their assets are stored, they only restore CryDR and network sign. Underlying assets are returned through various payment and transfer methods, at which point the token is destroyed.
CryDRs also be transferred to other entities or individuals, who can then reclaim cryptocurrency token for the value in the network, through the Bank decentral.
Additionally, CryDRs is intelligent programmable contract, with built-in logic related to certain asset classes and regions, allowing only authorized individuals to trade assets tokenized.
In Jibrel Network, for example, CryDRs have intelligent regulation embedded into them to make sure token mortgage-backed real-world comply with regulations such as KYC and AML.
What smart regulation?
It is a rule-book placed in Blockchain and built into CryDRs, to ensure compliance with regulations.
Rules are based on factors such as the asset class, and the jurisdiction of the assets held. This is the real world rules translated into code . So although CryDRs runs on a decentralized network, they still follow the rules set by the market regulator.
Anyone can tokenize the real world assets. The difficult part is to manage that asset tokenized as if it was a traditional assets. This is what smart regulation, it was arranged without government.
Prior to the transaction can be completed in a decentralized network, it will automatically check the ‘rule-book’ to see if it is in accordance with the regulations. Only then the transaction will go ahead.
These smart regulation distinguishes CryDRs built into the network as a platform Jibrel of securities other tokenized.
What are the benefits of CryDRs on decentralized networks?
Traditional banking haunt problems, such as slow transfer times and high costs, can be removed by bringing the real world into an asset Blockchain.
Using the smart-contract, CryDRs will eliminate the need for people and institutions to uphold banking services. This will reduce the high costs of traditional banking through automation, while at the same time increasing transparency and auditability of transactions.
A network like Jibrel will allow users to sign up for a loan, getting a securitized loan, and for investors to buy a security containing the loan. It could revolutionize how capital is allocated around the world, and actually change the way retail banking is done.
Align the interests of investors and borrowers through code will substantially reduce the risk of tokenized asset trading on a decentralized network. It takes the uncertainty out of the murky area when it comes to registering tokenized assets. regulatory bodies such as the SEC is still unsure how they should be treated.
Entities will also be able to benefit from the on-chain / off-chain arbitration. Cryptocurrencies known to be volatile, creating a great need for stable on-chain assets. If the real world assets tokenized,