Bank Corporate Trust beyond fiat
What Is Fiat?
The word "fiat" is Latin and means "let it be done" when translated. Fiat is a traditional currency that only exists because of a government decree. No utility is attached to the money itself except what the government decrees.
It means you can own a fiat or a bill, and that note would lose all its value in one day by government decree. It is unlike gold or platinum, which is not determined by government decree but possesses intrinsic value or utility and can be traded. Fiat money is a government-approved and distributed form of value, exchange or currency that is not backed by a physical commodity like gold or precious stones.
Since fiat is not structured upon physical assets, its value can be significantly affected due to inflation (a situation where the government prints more bills than required). Due to high supply, demand would be reduced, affecting the currency's value or becoming worthless because of hyperinflation. Also, if people stop using a nation's currency for global transactions, that is, they lose faith in the money due to government actions, the currency would lose value.
Hence, fiat derives value from the demand and supply process and the stability of the economy of the government that issued it. It means the currency is not measured against any physical structure but depends on market tides and the issuing government's position. Major global currencies are the U.S dollar and many other international currencies.
Fiat currencies are produced and distributed by a country's bank, often called a country's central bank. Unlike other banks, this bank is government regulated and the only institution with the right to print and control the distribution of the printed bills. Other banks handle daily transactions of this currency, but cannot produce, print or regulate its distribution. Commercial banks help save, manage, lend and control overall transactions with fiat from person to person.
Fiat money is government-issued and government-controlled.
The market (supply and demand) determines the value of a fiat.
Fiat money is not backed by any physical commodity like gold and silver but gets its value from the market.
Many countries' currencies today are fiat money.
Banks are laden with the responsibility of mediating fiat money transactions from one user to another.
Central banks of countries have the right to print, distribute and control the value of fiat money in the market.
Corporate Bank Trust Beyond Fiat
Unlike traditional banks that manage fiat transactions from person to person and receive remuneration for their roles, corporate bank trust organizations stand as trustees and manage assets for grantors. These assets can be physical assets or digital assets.
A corporate bank trust is not interested in daily bank deposit and withdrawal transactions but is solely designed to manage and secure assets and investments. These investments may involve loans, but it is beyond managing fiat money like commercial banks.
Do commercial banks operate corporate bank trusts?
Surprisingly, not all banks operate corporate bank trusts. Corporate trusts are financial institutions that serve as fiduciaries or trustees to help manage assets and distribute dividends according to the wish of the grantor. Some banks have departments that handle trusts, and some financial organizations are solely for designing and governing trusts.
Bank Corporate Trust and Digital Assets
Unfortunately, the financial world is expanding beyond traditional currencies as we begin to see the presence of digital currencies like bitcoin and their likes. We have also seen the continuous growth of other assets, including stocks, synthetic currencies, and NFTs. With these developments, the need to provide Corporate Bank Trust services for such valuables becomes necessary.
At BancorpTrust, we help corporate institutions and individuals achieve their digital and traditional Trust goals without going through all the difficulties associated with creating and managing a Corporate Bank Trust.
Register your Corporate Bank Trust Company Today
With the experience of over three decades working in the realm of finance, BancorpTrust is a licensed investment bank specialized in establishing Investment banks, offshore banks, Investment Funds, Investment Banking Trusts, Corporate Bank Trusts, Real Estate Funds, Investment Banking Blockchain Trusts, Credit Unions, Capital Trusts, cryptocurrency exchange, etc., at a competitive price, including your own private label Mobile Banking Platform, your own API, your own SWIFT code, yet without the bureaucratic "red tape"…
Our new project Blockchain DigitalCity is an extension to BancorpTrust that aims to give complete autonomy and empowers entrepreneurs like you to operate and live from their exclusive and tax exempt executive villa in the Dominican Republic.
The management team of BancorpTrust has been in this industry since 1990 and has a track record of successful Investment Bank establishments for over 3 decades.
For a confidential consultation on how to establish your own Investment Bank or Offshore Bank & Capital Trust, please contact: