Elrond, UTrust plan new merchant staking system




Elrond is announcing its intention to provide a ‘merchant yield’ system by partnering with a firm called UTrust to empower merchants to stake assets on the blockchain.


Ian Allison at Coindesk reports on the pending deal.


“The terms of the deal were not disclosed,” Allison writes. “Both platforms have tokens, and the firms said the combined community will be updated early this year on the final mechanics of the deal from a tokenholder perspective.”


In utilizing web 3 design and infrastructure, the company’s hope to allow merchants to combine merchant services with an additional source of income, something that many sellers would find abundantly handy.


The result is a little like having the cash in the register working on the merchant’s behalf in separate investments.


“A superlative version of payments that’s flawless, instant and inexpensive anywhere in the world is already a great step forward,” said Elrond Network CEO Beniamin Mincu in a press statement. “But what if, instead of charging a merchant X% per month to process transactions, they can receive this yield, to compensate for what they are spending on fees and maybe have a 5% yield in addition?”


Users can process transactions for BTC, ETH, DASH and USDT, or go into Elrond’s own EGLD token, or UTrust’s UTK. EGLD has an estimated market capitalization of around $4 billion.


“It’s a way for merchants to have their stake in this space and a more diversified treasury,” said UTrust CEO Sanja Kon. “We really want to change how people pay and get paid. Traditional payments are incentivized more in the way of large marketplaces and large merchants, instead of giving everyone the opportunity to do business. And that’s what we want to do.”


Staking is a growing field, and new options like this challenge the original go-tos for such types of transactions. EGLD and ETH may end up duking it out in the years to come. Watch for evolving cryptocurrency markets and the opportunities that they create.