The stablecoin space is to face a storm of disruption from ROCKZ, the first legally enforceable stablecoin backed by the Swiss Francs, one of the strongest fiat currencies in the world.
Those that have been trading cryptocurrencies for some time are well aware that the rampant volatility is a main obstacle to a large scale adoption. Recent surge in prices of digital assets have been followed by sharp price swings with an increasing market risk. The market clearly recognized the need for more stable alternatives which is driving the strong rise in the number of new stablecoin projects.
Moreover, there is also no “stable” reserve currency that is currently present to investors as an option today, with existing solutions in the market such as USD Tether [USDT] seeming to cause more problems than they can fix. They are not transparent, potentially meaning that around $1 billion, and one of the first entry pathways for new traders, is not completely collateralized.
Even the top coins in the market like Bitcoin [BTC] and Ethereum [ETH] are subject to volatility risk, leaving investors with no way to move away from all risks in the market. While multiple stablecoins have entered this space, very few are collateralized by actual assets or offer transparent operation. ROCKZ aims to disrupt the stablecoin space by offering a stablecoin backed by one of the strongest fiat currencies in the world: the Swiss Franc [CHF].
The Swiss Francs reserves will be held off-chain as collateral with third party custodians in Switzerland, with up to 90% of its reserves held in high-security Swiss Alp Bunkers, vaults, as physical banknotes. The remaining 10% will be held with various banks around Switzerland to enable the short-term availability of liquidity for ROCKZ.
Moreover, the company behind the coin has built a rigorous and robust legal framework, effectively ensuring that ROCKZ is backed by the Swiss Francs which are legally enforceable. The reason for choosing the CHF is because it is one of the most protected currencies in recent times, with the dollar losing 78% of its value to the CHF over the past 5 decades.
ROCKZ also provides a stable and reliable instrument for investments in ICOs, as it is backed by assets. Holders of the coin also have a legal right towards obtaining CHF even if the company issuing ROCKZ goes bankrupt.
The coin can be used by private investors who have carried out successful investments in the cryptocurrency market and want to protect their wealth. Those who use cryptocurrency for P2P money transfers, merchants and retailers can also send and receive the stablecoin without any security or counterparty risks.
Even traders and institutional investors can increase their participation in the new asset class by using ROCKZ as a ‘safe harbor’ for their wealth when the market is choppy. ROCKZ aims to be used to provide stable and accessible value backed by fiat currency and eliminating any unnecessary counterparty, market and security risks.
Similarly, the asset can also be used as a pivot currency to diversify their risk or to exit the market in times of high volatility. Users can also make a pledge against their holdings to issue guarantees to financial institutions worldwide, thus providing a valuable onramp in and out of the cryptocurrency markets.
The founding team of ROCKZ has a strong commitment towards driving the adoption of cryptocurrencies through adherence to the highest standards of regulation. This is reflected in their offer to provide full transparency on the project by disclosing every detail of their setup. The company offering the product also acts as a service provider company and has entered into a partnership with a FINMA regulated securities dealer.
The dealer creates securities for ROCKZ that are registered with SIX Group, the financial infrastructure provider in Switzerland. These securities are worth 1 CHF each and is clarified to be uncertified securities. The reserves in CHF will not be affected by the insolvency of the ROCKZ AG, with holders getting the fiat directly from financial intermediaries.
In order to demonstrate their attitude of complete transparency, a confirmation is published to coin holders whenever coins enter circulation. Moreover, a permanent confirmation process, similar to that in an ATM, is in the works. This will effectively allow any client of ROCKZ to confirm the amount of CHF held in the vaults.
ROCKZ AG maintains an analysis of select banks and operating vaults, so it can handle a list set to be continually updated with the list of banks where cash is held. The service also boasts of absolute security, with all access attempts being audited and logged in real-time, enabling efficient incident responses and forensic investigations.
Moreover, ROCKZ also functions on a distributed services network to eliminate the possibility of a single point of failure and to balance heavy and peak loads.
The company chose Ethereum as the platform to deploy their service on, as they view it as the best way to bring customers to the platform. Moreover, this also allows them to deploy the whole range of their services in a rapid and safe manner.
The service will connect with existing infrastructures through an API for KYC providers and third-party services such as merchants and other service providers. A web application will also be designed, along with a blockchain interaction sub-system and bank interaction sub-system.
ROCKZ AG aims to bring a precision level of security to the system, encrypting data at rest and in transit with the strongest available encryption algorithms from point-to-point and key management practices that include HSMs. They also do not hold custody of the keys, allowing users to utilize hardware wallets and preventing hackers from accessing the funds if ROCKZ AG is compromised.
In order to raise money for the platform, an ICO is being conducted for a utility token known as Alprockz tokens, issued by Alprockz AG during the offering. These tokens allow the users to access the ROCKZ platform and its services such as conversion of ROCKZ into cash, the issuance of bank cards and the feature of using collateralized debt instruments.
ROCKZ tokens, on the other hand, are ERC-223 tokens set to be issued through the ROCKZ platform after the ICO, according to the user’s orders for the exchange between CHF and tokens.
To know more about ROCKZ, click here!