MakerDAO, the creator of Dai, a decentralized stablecoin based on the Ethereum blockchain, and Wyre, a blockchain money transfer company operating a regulated global payment infrastructure, today announced the availability of fast and compliant conversion of fiat currencies to Dai.
Working together, MakerDAO (MKR) and Wyre allow organizations to compliantly move fiat currency directly into and out of Dai, removing exposure to the unpredictability of speculative cryptocurrencies like Ethereum or Bitcoin while benefitting from the speed, transparency, and security of the blockchain.
Pairing Dai to Wyre’s trading engine and fiat on-ramps and off-ramps will enable nearly-instant movement of funds across borders. By decreasing the amount of time it takes to clear payments, businesses can increase the number of payment cycles, thereby increasing revenue. Remittance platforms or crypto services can also settle instantly in Dai rather than use wires which can take up to 48 hours.
For organizations looking to use Dai, Wyre offers an API to connect bank accounts to the blockchain through Dai, while taking care of AML/KYC onboarding and compliance. Organizations can programmatically access Dai trading pairs against fiat currencies (USD, EUR, AUD, GBP, CAD, HKD, CNY) as well as major cryptocurrencies (BTC and ETH). On-ramps and off-ramps for local settlements are currently available in 30+ countries to API partners.
“As part of our mission to level the economic playing field, we’re thrilled to work with Wyre to offer developers a way to build seamless connections to and from a world of fiat currencies and Dai, giving organizations access to a truly decentralized and stable currency pegged to the US dollar. Expanding the Maker ecosystem, organizations can now benefit from the instant, secure and scalable power of blockchain without having to first buy/sell volatile crypto assets like Ethereum or Bitcoin.”
“We’re committed to developing partnerships with leaders like MakerDAO to enable the blockchain ecosystem to evolve at a faster pace. With our API, developers can leverage our experience in banking and compliance with the stability of Dai stablecoin to build and engage their communities, cutting through the red tape, and leaving the off-chain complications to a regulated money services business.”
Held on the blockchain, Dai achieves stability via an open smart contract platform that allows anyone in the world to lock up their assets as collateral and issue Dai against them. Unlike other stablecoins, there is no need to blindly trust a third party.
When users want to retrieve their collateral, they simply return the Dai they issued plus a fee based on how long it was outstanding. True to the spirit of the blockchain, no one can alter these core mechanics of Dai, making it a safe and predictable form of money. Launched in 2017, Dai has successfully maintained a soft peg to the US dollar.
