IBM Backs New USD-Pegged Stablecoin
In a partnership with US-based financial services provider Stronghold, IBM is backing a new crypto-currency pegged to the U.S. dollar.
The tech giant has put its weight behind a so-called “stablecoin,” a digital token that is tied to an existing government-backed currency, in order to reduce the volatility associated with virtual currencies.
Announced on Tuesday, Stronghold is launching USD Anchor, which will run on the rails of the Stellar blockchain and use its consensus mechanism to verify transactions.
Buyers of the coin will deposit greenbacks with the company’s partner bank, Nevada-based Prime Trust for Stronghold to issue the tokens based on a 1-to-1 ratio.
Stronghold USDs are designed for use among businesses, such as financial institutions, multinational corporations, and asset managers, the company said. The tokens may be made available to retail customers in the coming months.
USD Anchor follows TrueUSD and Tether as the latest example of efforts to tokenize the US Dollar, combining the efficient and fast transactions possible on open blockchain networks with the stability of fiat money.
in an interview, Stronghold founder, and Chief Executive, Tammy Camp said;
“The token allows folks to do payments, a foreign exchange between companies in a very seamless and frictionless and more secure way,” “It enables people to be able to trade that token with other assets and other tokens as well,” she added.
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