IBM Announces Experiments with New Stablecoin
As part of its new project, IBM has announced a partnership with Stronghold, a crypto-involved fintech startup. The goal of the partnership is the exploration of stablecoin, which is tied to a currency backed by the government.
Stronghold introduces Stronghold USD
A financial institution from San Francisco, Stronghold, recently created and launched an asset-backed token on Stellar’s network. Those interested in buying the Stronghold USD cryptocurrency, backed by the US dollar, can deposit the dollars in Prime Trust, a bank based in Nevada, which has partnered up with Stronghold.
Stronghold identifies the new coin’s potential uses in business networks involved with blockchain technology. To do this, they have entered a partnership with IBM, also interested in testing the crypto.
The plan is to explore this new technology and find practical uses for banks and financial institutions, which may choose to implement it in their business practices. In the end, there is hope that the use of this coin may allow safer, more efficient, and faster transactions.
Despite the fact that the stablecoin is to be volatility-proof, a certain amount of controversies regarding another stablecoin, Tether, have appeared recently.
There is a belief that Tether is being used by the authorities for crypto market manipulation. The theory goes that Tether can manipulate the price of Bitcoin, which pulls the entire market whenever it changes its behavior. Some even believe that it was Tether that was responsible for the crypto price jump that occurred at the end of the previous year.
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