The American giant IBM, in partnership with the Stronghold start-up, began working on a new cryptocurrency, tied to the US dollar. Stablecoin is called Stronghold USD and will be launched on the Stellar blockchain, reports Fortune.
The technology giant is a pioneer in the field of business solutions based on blockchain technology. For example, the company has developed a program with which it is possible to track the chain of international transfers in real time, and also to conduct such transactions several times faster.
Recently, stablecoins are one of the leading trends in the cryptocurrency market. So Tether, the most widely used dollar coin, can now bypass the popularity of bitcoin. Many other companies also develop their own versions of the coin for $ 1, including Circle, TrustToken and Basis.
“This development will give us the opportunity to make transactions on the blockchain the cheapest, reducing the cost of currency exchange. Now, for example, when carrying out such cross-border payments, users have to convert the US dollar to the Stellar Lumens system’s cryptocurrency, and then back, “commented Bridget van Kralingen, IBM’s senior vice president for global industries and blockchain.
It is assumed that Stronghold will place its dollar reserves in the Trust Trust Trust, which will handle bank accounts in institutions insured by the Federal Deposit Insurance Corporation (FDIC).
IBM will be responsible for applying for a new coin among institutional investors, including cross-border transfers and multicurrency operations. According to Jesse Luna, the head of the IBM unit, IBM, by the end of this year, the company will start using the new technology.