IBM, Stronghold team on US dollar-pegged cryptocurrency

IBM has partnered with FinTech venture Stronghold on a new cryptocurrency, called Stronghold USD, which is backed by Federal Deposit Insurance Corporation-insured US dollars.

The stable coin has been launched on the Stellar blockchain platform. Buyers of the coin will deposit dollars with partner bank, Prime Trust, for Stronghold to issue the tokens based on a 1:1 ratio.

“The process for seamlessly managing and trading assets of any form from digital to traditional currencies, needs to evolve as financial institutions are seeking ways to break into new asset classes like cryptocurrencies,” says Stronghold’s Co-founder and CTO, Sean Bennett. “Asset-backed tokens can provide seamless access to all currencies, improving the global movement of money. We’re honoured to work with IBM to explore new ways to use Stronghold USD within.”

“The digitisation of real world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world,” comments Jesse Lund, Global Vice President of IBM Blockchain. “New types of fiat-backed instruments, like Stronghold’s USD token, have the potential to improve the backbone of international banking operations and payments, giving banks an easier way to integrate with public blockchain networks without significant changes to their core banking and compliance infrastructure.”

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