- IBM is experimenting with own stablecoin cryptocurrency called Stronghold USD.
- Stronghold USD is pegged to a dollar and would help financial institutions handle financial transactions more securely and faster.
Tech giant International Business Machine (IBM) teamed up with Stronghold, a financial technology firm to develop a stablecoin pegged to the dollar. IBM stated that the digital currency would help banks and financial institutions to reduce the volatility associated with cryptocurrencies.
On Tuesday 17th July, IBM announced that the digital currency named “Stronghold USD is backed by Federal Deposit Insurance Corporation-insured U.S. dollars, with reserves being held by blockchain-focused asset manager Prime Trust.”
According to the tech giant, it is experimenting with the “digital dollar” to discover various ways by which the stablecoin can help financial institutions handle financial transactions more securely and faster. The stablecoin was created purposely to reduce the volatility prevalent with cryptocurrencies.
However, “Stronghold USD” has received much controversy similar to those seen by the popular stablecoin called tether. Tether was accused of being instrumental to the sudden surge in bitcoin’s price late last year.
Cryptona reported in May that “IBM announced a partnership with Veridium Labs to tokenize carbon credits, this will enable firms to utilize the blockchain technology in tracking their carbon footprint.”
IBM stated that Stronghold USD will depend on the platform created in 2014 by Stellar and Jed McCaleb – former Ripple executive.
IBM adopt the Big Blue blockchain which differs from the bitcoin blockchain. The IBM blockchain is used by only certain trusted parties while the bitcoin blockchain is public open to everyone to use it.
According to data from MarketCoinPrice, the total market value of all cryptocurrency is presently about $270 bln. This decline began since the beginning of 2018, with Bitcoin dropping from its all-time high of about $20,000 last December to presently about $6,718 as of press time.