In a world of cryptocurrency, the rise of stablecoin backed by fiat currencies are catching public interest rapidly. Similar to Tezos and Gemini dollar, an yet another stablecoin is gradually entering the crypto market. However, the most interesting concept this time is that “ it is backed by Great Britain Pound”
LBXPeg is ERC20 compliant and may have variants that might be pegged to the USD or Euro in the future. It is created by London Block Exchange (LBX) intends to issue it on other blockchains if compliance controls can be maintained.
What is LBX?
LBX launched back in 2017, offers OTC trading as well as a mobile app to trade popular cryptos like BTC, ETH, LTC, XRP, and a variety of other cryptos. The one-for-one reserves will be held in a third-party bank which will be regularly audited by top auditing company.
LBX’s CEO, Benjamin Dives, said that the reserves will be regularly audited by a top accountancy firm and he adds saying is the first stablecoin to be pegged to the pound. And that the first stablecoin will be minted in the next 10 days.
He further adds saying, “The primary use case will be settlement for OTC trades in the London market, then commonwealth exchanges where they don’t have fiat banking, and then securities tokens who want to pay dividends in a cryptopound.”
The Emergence of Stablecoin
Stablecoins have been gaining a lot of traction in the recent days. Stablecoin essentially link cryptos to real world assets, to reduce the volatility and to give them the fluidity of cryptos.
Many mainstream exchanges accepting fiat-to-crypto have been shut down due to compliance concerns. Tether, a stable coin allows them to offer dollar like liquidity even though they can’t accept dollar deposits. Blockchain’s report found that 60 percent of bitcoin trades occur globally through Tether.
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