Blockchain and Stablecoin Integration for Crowdfunding: A framework for enhanced efficiency, security, and liquidity
Fuente:
arXiv
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| Natura: | Preprint |
| Pubblicazione: |
2025
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| _version_ | 1866929682152161280 |
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| author | Unsal, Mustafa Savas |
| author_facet | Unsal, Mustafa Savas |
| contents | Crowdfunding platforms face high transaction fees, need for more transparency, and trust deficits. These issues deter contributors and entrepreneurs from effectively leveraging crowdfunding for innovation and growth. Blockchain technology introduces decentralization, security, and efficiency to address these limitations (1). This paper proposes a blockchain-based crowdfunding framework that integrates stablecoins such as USDT and USDC to mitigate cryptocurrency volatility and ensure seamless fund management. Smart contracts automate compliance processes, including Know Your Customer (KYC) / Anti-Money Laundering (AML) checks, and enhance operational efficiency (2). Furthermore, tokenization enables liquidity by allowing fractional ownership and secondary market trading, which must be effectively implemented on any global market platform. A comparative analysis highlights the superiority of the framework over traditional platforms in terms of cost reduction, transparency, and investor trust. A case study focused on the Turkish market illustrates the practical benefits of blockchain adoption in equity crowdfunding, particularly in navigating local regulatory and financial complexities. This approach provides a scalable, secure, and accessible solution for modern crowdfunding ecosystems, while reducing the costs of platforms and increasing the trust of investors and backers in crowdfunding projects. Keywords Blockchain, stablecoins, crowdfunding, tokenization, and compliance |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2501_11145 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Blockchain and Stablecoin Integration for Crowdfunding: A framework for enhanced efficiency, security, and liquidity Unsal, Mustafa Savas Computational Engineering, Finance, and Science Crowdfunding platforms face high transaction fees, need for more transparency, and trust deficits. These issues deter contributors and entrepreneurs from effectively leveraging crowdfunding for innovation and growth. Blockchain technology introduces decentralization, security, and efficiency to address these limitations (1). This paper proposes a blockchain-based crowdfunding framework that integrates stablecoins such as USDT and USDC to mitigate cryptocurrency volatility and ensure seamless fund management. Smart contracts automate compliance processes, including Know Your Customer (KYC) / Anti-Money Laundering (AML) checks, and enhance operational efficiency (2). Furthermore, tokenization enables liquidity by allowing fractional ownership and secondary market trading, which must be effectively implemented on any global market platform. A comparative analysis highlights the superiority of the framework over traditional platforms in terms of cost reduction, transparency, and investor trust. A case study focused on the Turkish market illustrates the practical benefits of blockchain adoption in equity crowdfunding, particularly in navigating local regulatory and financial complexities. This approach provides a scalable, secure, and accessible solution for modern crowdfunding ecosystems, while reducing the costs of platforms and increasing the trust of investors and backers in crowdfunding projects. Keywords Blockchain, stablecoins, crowdfunding, tokenization, and compliance |
| title | Blockchain and Stablecoin Integration for Crowdfunding: A framework for enhanced efficiency, security, and liquidity |
| topic | Computational Engineering, Finance, and Science |
| url | https://arxiv.org/abs/2501.11145 |