IBM partners with Stronghold to create Stablecoin.
July 19, 2018 5:22 am,
On July 17, 2018, global payment and trading platform stronghold announced the launch of their Stablecoin “Stronghold USD.” The Cryptocurrency will be built on Stellar Lumens’ (XLM) blockchain and will offer a 1:1 ratio with the U.S. dollar because the coin is actually backed by deposits held at a banking institution. The goal is to use the Stablecoin as a new liquidity tool for real-time foreign exchange and international settlement.
Stronghold is a financial institution building an asset-agnostic global payment and trade ecosystem. It has over 20,000 traders on its Cryptocurrency trading platform built on the stellar network. The exchange allows institutions to send, receive and trade Bitcoin, Ethereum, and Lumens.
The Stellar ecosystem allows for immediate exchangeability, anywhere in the world, with low transaction costs and fewer intermediaries than traditional bank transfers.
With Bitcoin and traditional Cryptocurrencies, there is no regulating body. They are purely autonomous types of networks. But with Stablecoin, you actually do have a regulatory agency in place still, because the issuer of the asset is, in this case, a regulated financial services entity. Secondly, Cryptocurrency is highly volatile in an exchange rate. But the value of the Stronghold coin will at all times mirror the US dollar.
IBM will explore new ways to use Stronghold USD and expand its global business for blockchain-based enterprise solutions. IBM’s goal is to transform traditional banking protocols, using blockchain-based solutions to modernize the multi-trillion-dollar industry of cross-border payments. Secondly, the digitization of real-world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world.