Anchors are entities that people trust to hold their deposits and issue credits into the Stellar network for those deposits. All money transactions in the Stellar network (except lumens/XLM) occur in the form of credit issued by anchors, so anchors act as a bridge between existing currencies and the Stellar network.
Stablecoin Corp's Anchors work the same way as any other Stellar Anchor and have 4 main functions for users:
- Receiving payments from users
- Issuing tokens to users
- accepting tokens from users
- Making payments to users
Users are able to send their accepted currency (in Stablecoin Corp's case BTC or ETH) and are issued a corresponding token of equivalent value. Users are then free to trade that token and, if so desired, withdraw them. Tokens that are Stablecoin corp must be withdrawn through the Stablecoin Corp Anchor and will not be able to be withdrawn through other anchors that issue tokens of the same currency (e.g. another BTC token)