AEON is entering into a strategic partnership with AB DAO to better link digital assets to practical utilities, a long-term goal of the blockchain sector. While decentralized finance has flourished within its own ecosystem, using on-chain assets for everyday purchases, such as buying coffee, has proven to be a technological and practical difficulty. This new partnership aims to remove these barriers by facilitating practical crypto payments in everyday commerce and could represent a huge leap into the mainstream.
Integration of AB Chain Assets into global trade
Recently, AEON announced a partnership through its official channels with a focus on integrating AB Chain Assets into the AEON Pay infrastructure, including supporting AB Chain and the Stablecoin AB $USD1 to shift these tokens from speculative or governance-type assets to functional currencies used for “real-world payments.”
Using AEON’s established payment network, AB Chain members can now use AB Chain assets to transact at more than 50 million merchants worldwide. This wide range of merchants offers something for everyone – from luxury retail and local service businesses to the first cup of coffee of the day. The key benefit for our members is the ability to ‘scan to pay’, just like traditional mobile payment systems such as Apple Pay and AliPay, with the added benefits of the security and autonomy of blockchain technology.
The role of AEON Pay in the Web3 ecosystem
AEON wants to shape the Web3 payment ecosystem. AEON Pay, AEON’s flagship product, simplifies blockchain transactions by reducing the need for users (consumers/merchants) to understand the technological aspects. Users can pay more easily, and businesses don’t have to worry about converting crypto payments to fiat or safeguarding their funds until they do.
The application will have a social-first financing model with Telegram as their next partner by allowing all users to access their products via Telegram with the AEON Pay bot. This is in line with the growing trend in Telegram’s financial sector, where a large enough user segment will drive a broader level of adoption of Web3 products.
Moving utility with stablecoins and scalability
The founding of AB$USD1 is an important aspect of this relationship. While volatile assets like AB are great for ecosystem growth, stablecoins are a driving force in trading. The other side of the coin is that by offering a dollar-pegged medium of exchange on the AB Chain, the partnership offers both sellers and consumers protection against the price fluctuations that come standard with digital assets.
This move comes after a series of developments in the crypto payments space, where infrastructure providers are focusing on low-latency, high-throughput solutions to create competition for traditional financial networks such as Visa or Mastercard. According to data from CoinMarketCap, the need for stablecoin in emerging markets is at its maximum, making the timing of the partnership between AEON and AB DAO extremely strategic.
Conclusion
The alliance of AEON and AB DAO is indicative of the evolution of the payments world in Web3; it is also a demonstration that both organizations have united their asset base and trading base as a basis for developing a blueprint for how decentralized finance could be accepted into the mainstream of commerce. As scan-to-pay solutions become increasingly popular, the line between the digital wallet and the point of sale will continue to blur, ushering in a whole new era of global financial inclusion.