UMA digital currency project
The main idea behind Universal Market Access is reflected in its name: by developing a protocol for creating synthetic assets and financial contracts on the blockchain, it seeks to democratize and decentralize the financial derivatives market.
Traditional financial markets have significant barriers to entry in the form of regulations and custody requirements, which tend to prevent individuals from participating in them. It is often particularly difficult for potential traders and investors to participate in markets outside their local financial system. This prevents the emergence of a truly comprehensive global financial market and limits participation to a handful of institutions that can provide the necessary due diligence and due process.
On the other hand, UMA contracts are based on the Ethereum blockchain, whose permissionless nature allows any user to create and operate digital derivatives from anywhere in the world. This accessibility is particularly important for developing economies around the world, where financial institutions are often far from mature, forcing local market participants into relative isolation.
