THELOGICALINDIAN - IBM has partnered with fintech startup Stronghold to barrage a stablecoin called to the US Dollar The cryptocurrency will be angry to governmentbacked authorization deposited at banks covered by the Federal Deposit Insurance Corp FDIC
A fintech startup alleged Stronghold is ablution a new cryptocurrency alleged to the US Dollar, reports CNBC. “Stronghold USD”, as the new cryptocurrency is called, will be backed one-for-one with US Dollars which are captivated by blockchain-focused asset administration aggregation Prime Trust. The charted close will drop the money at banks which are insured by the FDIC.
IBM is partnering up with the fintech startup and will analyze means of allowance banking institutions and banks action payments quicker and added securely.
The activity is one of the few attempts to abate the animation which is commonplace aural the cryptocurrency market. Stronghold’s CTO, Sean Bennett, said in a recent press release:
Stronghold’s stablecoin will be underpinned by the Stellar network, which was developed by above Ripple controlling Jed McCaleb.
Stablecoins are apparent as an attack to bedew the animation in the cryptocurrency bazaar by pegging them to existing, added abiding assets, about tokenizing the latter.
However, admitting the adherence that they pose, experts accept additionally appear a fair cardinal of drawbacks to the concept, including the inherent annex on the adherence of the basal asset, as able-bodied as the charge to assurance a centralized third party.
Another cogent check is the comparisons that will accordingly be fatigued amid Stronghold and Tether – a stablecoin issuer that has begin itself mired in controversy. The aggregation abaft USDT, Tether was accused of not accepting the able USD affluence to aback its cryptocurrency.
A contempo accuracy address issued by Tether appear that a US-based law close independently confirmed that the aggregation did, in fact, accept the appropriate bulk of USD, The ambiguity of Tether’s US Dollar reserves, accompanying with allegations of manipulating Bitcoin’s prices, is still a account for agnosticism amid some in the crypto community.
While apparently agnate to Tether, it is account acquainted that Stronghold’s stablecoin reveals assertive key differences to USDT. For once, the above is covered by the FDIC. Additionally, the captivation of Prime Assurance – a state-chartered assurance aggregation – should be abundant to accord investors the accord of apperception that Stronghold USD is appropriately and absolutely backed.
What do you anticipate of the new stablecoin which is to be issued by Stronghold? What will IBM accompany to the table? Let us apperceive in the comments below!
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