IBM is working with fintech startup Stronghold to launch a cryptocurrency pegged to the US dollar. The IBM crypto will be Stronghold USD.
it will be supported by the Federal Deposit Insurance Corporation which will ensure that it is covered by US dollars.
The US dollar reserves will be held by Prime Trust, an asset manager focused on blockchains, and the cryptocurrency will be based on the platform developed by Stellar.
IBM’s goal is to use the stable coin in the crypto world thanks to its very low volatility. Once in the market, it will be a direct rival of Tether.
With this stable coin, the company wants to experiment with new ways to help banks and other financial institutions process payments faster and more securely.
IBM is now very much in the vanguard of developing blockchain-based tools and platforms, so this further initiative should not come as much surprise.
Also because of their volatility, cryptocurrencies tend not to be a means of payment particularly appreciated by traditional finance, so a stable coin would allow the company to approach even customers who would otherwise be unattainable.
The blockchain developed by IBM, however, is different from the original which is at the basis of Bitcoin.
In fact, the IBM version is not decentralized, nor is it completely public: access is reserved only to a specific number of users who are authorized to use it.