Stablecoins are a logical step for the gaming and the esports industry, providing seamless borderless payments for a global network of participants. While physical sports are tied to a city or a region, virtual sports were designed without geographies in mind, bringing with it certain execution challenges. For example, Epic games recently announced a $100 million for Fortnite esports tournament prize pool for its global audience only to then run into challenges making payments globally through traditional channels. Blockchain technology can streamline this process.
Zytara is one of the latest fintech companies looking to tackle gaming payments using stablecoins, though a newly formed partnership with Prime Trust.
Zytara will launch its own branded stablecoin, ZUSD, to serve a variety of use-cases within the rapidly growing industry of gaming and esports, while creating its own banking platform and payment network designed for Millennial and Gen-Z gamers. Prime Trust will serve as the issuer of ZUSD and hold 1:1 USD reserves. Prime Trust provides similar infrastructure to TrueUSD and a handful of other stablecoins.
“Our goal is to bring financial innovation and gaming together. This new digital banking platform will combine all the capabilities of a bank account with features for gamers and esports enthusiasts. The Zytara dollar will allow users to transact instantaneously, replacing traditional payment methods,” said Al Burgio, Founder and CEO of Zytara.
ZUSD is initially slated to launch on Ethereum before migrating to DigitalBits, an emerging blockchain in the gaming space. The latter is a fork of Stellar, which has also been actively involved in furthering the stablecoin industry. Stellar recently announced a partnership with banking institution Bankhaus von der Heydt to issue a Euro stablecoin called EURB.