IBM Backs New USD-Pegged Stablecoin

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In a partnership with US-based financial services provider Stronghold, IBM is backing a new crypto-currency pegged to the U.S. dollar.

The tech giant has put its weight behind a so-called “stablecoin,” a digital token that is tied to an existing government-backed currency, in order to reduce the volatility associated with virtual currencies.

Announced on Tuesday, Stronghold is launching USD Anchor, which will run on the rails of the Stellar blockchain and use its consensus mechanism to verify transactions.

Buyers of the coin will deposit greenbacks with the company’s partner bank, Nevada-based Prime Trust for Stronghold to issue the tokens based on a 1-to-1 ratio.

Stronghold is the main representative for Bitcoin and Ethereum on the Stellar network, enabling users to trade these cryptos more efficiently using its decentralized infrastructure layer.

Read More: https://news.bitzamp.com/ibm-partners-with-stronghold-to-backed-a-new-crypto-currency-dubbed-stablecoin/