A traditional stable digital token /coin is backed by a reserve which corresponds with the coins in circulation. The collateral can be fiat currency, a cryptocurrency or an asset. In theory, a stable coin will remain constant in price, as it is a representation of a known amount of an asset.
Trillion converts cash into digital currency, to anchor the value to the price of national currencies like the US dollar, the Euro, the Yen, the Argentinian Peso, Colombian Peso or Brazilian Real.
“Unlike the conventional speculative digital currencies, which have demonstrated to be highly volatile, stable coins provide investors with the pragmatic and many benefits of a digital currency, without having to worry about abnormal price changes since they are collateralized by real world assets.”
Carlos Cuevas Olivar, Co-Founder & CEO @Trillion.com
A security token is simply a cryptocurrency token that
represents the ownership of an asset. Think of this like a
stock or equity ownership in a public company. Investors in
stocks expect profits in the form of stock price appreciation
and/or dividends. This is essentially how a security token
functions as well. Security tokens provide ownership of an
asset and returns represented in a secure digital cryptographic token legally structured for global regulatory frameworks acceptance.
According to Global Wealth Report, total global wealth has now reached USD 280 trillion, it is 27 percent higher than a decade ago, (Credit Suisse Research Institute, 2017 (CSRI)) and much of this wealth is relatively illiquid. One of low liquidity asset’s, such as real estate value alone was estimated at USD 217 trillion where commercial property accounts to roughly USD 54 trillion (25%) a market that is slightly less than all globally traded equities and securitized debt instruments put together (Savills, 2016).
Stan Pearson wrote in his blog on Jan 2018 that by taking a conservative estimation, and assuming that commercial estate market has a 10% liquidity premium, then asset tokenization of commercial real estate alone can ambitiously target a USD 5.4 trillion liquidity premium market, which is almost 10x bigger than the market cap of all cryptocurrencies put together. The potential asset backed token market size is much bigger and encompasses different assets such as oil, gold, fiat currencies, diamonds, real estate, shares of companies, artwork, intellectual property etc.
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