IBM Backs New US Dollar-Pegged Stablecoin That Runs on Stellar Network

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IBM Backs New US Dollar-Pegged Stablecoin That Runs on Stellar Network

Post by howlermunkey » Tue Jul 17, 2018 7:36 pm

A new project for a U.S. dollar-pegged stablecoin that runs on the Stellar blockchain network has received backing from IBM, Reuters reports July 17.

The new asset is dubbed ‘Stronghold USD’ after its creator, fintech startup Stronghold. The token launched today, and is reportedly issued using a 1:1 price ratio with the U.S. dollar. It is the first ever stable-value crypto project to use the Stellar network, as Fortune notes.

IBM has been using the Stellar network to facilitate cross-border payments since 2017, and is said to have now begun testing the new stablecoin. Jesse Lund, IBM’s vice president of global blockchain, told Reuters that:

“IBM will explore use cases with business networks that we have developed, as a user of the token. We see this as a way of bringing financial settlement into the transactional business network that we have been building.”

In her interview with Fortune, IBM’s Bridget van Kralingen, senior vice president of global industries, platforms and blockchain, said that the new project represented a “tremendous opportunity” to streamline the firm’s existing cross-border blockchain payments efforts.

Van Kralingen said that until now, IBM has been converting between different fiat currencies using Stellar’s native token, Lumens (XLM) as a bridge between them. The existing system is thus doubly exposed to both variable intra-fiat exchange rates and the notorious volatility of the cryptocurrency markets - to which Lumens, unlike a stablecoin, remains subjected. ... ar-network

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