International Business Machine (IBM) is supporting a new cryptocurrency, Stronghold USD, meant to be a stable coin and is pegged to US dollars according to Hindustan Times. By partnering with the US-based financial services provider Stronghold, they launched this stable coin on Tuesday.
The report further adds that this coin is launched to add stability to the volatility sector. Users who wish to buy these coins need to deposit greenbacks with the company’s bank, Nevada-based Prime Trust for Stronghold to release the tokens based on the one-to-one ratio.
In this year, the fall of Bitcoin against the dollar is around 55 percent after rising to over 1,300 percent last year. Hindustan times mentions that the new cryptocurrency is pegged to major currencies like US dollar, pound, and euro, and also to assets like gold, seeking the ways to expand the use of digital currencies.
Uses Of Stronghold
The company reveals that the Stronghold is used for business sectors like MNCs, financial institutions, and asset managers. The tokens are expected to reach users in the coming months.
In an interview, Jesse Lund, IBM’s vice president of the global blockchain, said that the token has the engineering work and they have seen an early release of it, reported by Hindustan Times. Jesse Lund further adds that the IBM intends to discover use cases with business networks by using a new cryptocurrency developed by them. They believe that this is a method of connecting financial settlement with a transactional business network.
The new cryptocurrency operates on a blockchain technology and applications that work on blockchain and stable coins become a major factor, Lund said.
The Stronghold founder and Chief Executive Tammy Camp said that this cryptocurrency or a token allows users to make payments, and perform foreign exchange between companies in a seamless and highly secure way.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]