OmiseGo Joins Crypto Coalition Universal Protocol Alliance

OmiseGo, a finance-oriented scaling network for Ethereum, has become a member of Universal Protocol Alliance, a coalition of blockchain and cryptocurrency-focused firms
OmiseGo, a finance-oriented scaling network for Ethereum, has become a member of Universal Protocol Alliance, a coalition of blockchain and cryptocurrency-focused firms

OmiseGo, a finance-oriented scaling network for Ethereum (ETH), has become a member of Universal Protocol Alliance, a coalition of blockchain and cryptocurrency-focused firms.

Targeting financial services and tax collection

In a press release shared with Cointelegraph on Oct. 8, the startup revealed that it will incorporate the Universal Protocol Platform UPT utility token into its payment processing technology. By doing so, OmiseGo intends to let stakeholders to use UP stablecoins for financial services and tax collection, as well as collect transaction fees.

Dan Schatt, co-founder of the Universal Protocol Alliance, said that OmiseGo’s technology “will help support the mass adoption of blockchain technology utilizing UPUSD and other UP stablecoins for consumers, merchants and local governments.”

Partnership with Hydro Labs to streamline payments

Also today, OmiseGo announced a partnership with Hydro Labs, an open-source blockchain project designed to address the unbanked issue. The cooperation between the companies is geared to streamline Hydro Pay Ethereum-based transactions, purportedly making them instant even when the Ethereum network is congested.

As for OmiseGo, the new partnership allows it to introduce the real world application of its plasma chain technology for everyday payments. Indeed, the problem of the unbanked population, which accounts for around 1.7 billion adults across the globe, remains acute. 

This spring, the Alliance issued its own euro-pegged stablecoin. The coin is pegged to the euro on a 1:1 basis and will reportedly allow customers to earn up to 8 percent interest. Moreover, the stablecoin targets residents in countries with high inflation or limited access to traditional banking.