Capricorn Protocol Hosts Get Together. Pens Backing Agreement with MQ Technologies for its Fully Backed CUSD Stablecoin

Capricorn is an emerging decentralized protocol that has built the most efficient, asset-backed stablecoin in the crypto industry. The protocol builds upon the success (and failures) of different stablecoins to deliver the most viable option in the market yet. Capricorn is moving forward and paving a new path for innovation with its latest collaboration with MQ technologies, an A-listed Malaysian firm.

The MQ Technologies’ Agreement

MQ Technologies is one of the most advanced firms in Malaysia, working towards building sustainable 

solutions. It was one of the many participants that were invited to a real-world get together by Capricorn Protocol. Other participants included Deto Nick Ng, Chairman of CEA; and Vincent from BitBox.

In the meet-up, Bryan Teh explained that blockchain was an important and now an integral part and that its collateral stablecoin approach is sound “by providing more convenient channels for enterprise financing in an efficient and safer way and integrate with the diversified assets using blockchain technology to fill in the gap.”

During the meet, The Capricorn team made an impression on the attendees, including MQ Technologies, which decided to enter an agreement on the spot, pledging to back the project to see it grow into a major contender. The appreciation for Capricorn comes due to its stress-proof and financially viable asset-backed stablecoin, CUSD.

Capricorn highlighted the need for a backed stablecoin to resist the shortcoming of existing stablecoins and to avoid any further collapses. According to the team, CUSD serves as a perfect stablecoin that has the backing of real-world assets, protecting the CUSD parity and users of the stablecoin. The protocol acknowledged the importance of real-world assets and their role In resisting de-pegging, citing the collapse of UST as a perfect example of why a stablecoin’s value still needs actual valuable stuff behind it.

Why Capricorn’s Stablecoin CUSD is Better?

Since the rise of stablecoins, they have provided valuable support to the crypto community. With their value parallel to fiat, they make it easy for the users to transact or hedge their digital assets without being a victim of price volatility which the crypto assets are so infamous for.

While there are several stablecoins in the crypto sphere today, with many running high volume market cap, Capricorn Protocol believes that most are flawed and at one time, will face collapse.

Giving the example of the recent fall of Terra’s UST, at one time, the third-largest stablecoin, The Capricorn team defended that a decentralized stablecoin with just the right collateralization coupled with efficient liquidity support is the only way forward. 

In the wake-up call of the dreadful crash of Terra’s recent UST and LUNA debacle, the CEO of Capricorn pointed out several flaws that existed in the ecosystem. According to him, the unrealistically high interest staking on Anchor (20% APY) was pumping more UST in the market than the system could recall. Though the attempts were made to protect Terra chain with high volume purchasing of Bitcoin, ultimately, this would have failed too with the fall of Bitcoin’s value. 

CUSD: Anticipating Moves 

According to Teh, the Capricorn Protocol is loaded with safeties that give it a de-pegged or crash-proof approach toward CUSD. Using real-world collateral makes it immune to any volatility. 

But that is just the tip of the iceberg. The team also has a rich banking and regulatory experience, giving it an edge in the game as it can anticipate different regulatory or other governmental moves, allowing it to be prepared in advance for compliance. This was reiterated by Teh, 

“With so many successful experiences or failures for us to learn from, and the advantages of our team’s experience and resources in the fields of finance, law, and compliance, I believe that Capricorn can successfully occupy a place in this track.”

Now with a publically listed A-Class firm putting its weight behind Capricorn and its CUSD stablecoin, the protocol will have the necessary funds for expansion. The money will be utilized towards different approaches that will guarantee the development of the ecosystem, including widespread use and, of course, the collateralization to ensure the parity of CUSD with the US Dollar does not falter.


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