IBM Backs Up Latest Stablecoin- Stronghold USD
Alternatives for the Tether (USDT) keep appearing day by day in the cryptoverse. The newest stablecoin to appear in the scene is Stronghold USD, having IBM as its supporter. Stronghold USD is backed up by the US dollars at a 1:1 ratio, the dollars being kept at the company’s partner bank, Prime Trust.
They claim the token will be backed one-to-one by fiat US dollars, the reserves belonging to Las Vegas-based Prime Trust – the same state-chartered bank which its stablecoin competitor TrueUSD uses. The company also made public its partnership with IBM, which will research new applications for the token within business networks on the IBM Blockchain Platform.
“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,” said Sean Bennett its co-founder and CTO.
“Asset-backed tokens can provide seamless access to all currencies, improving the global movement of money. We’re honored to work with IBM to explore new ways to use Stronghold USD within.”
But don’t think that all crypto members will start switching from Tether to Stronghold. The company states that Stronghold USD are pre-approved tokens that were created to serve only as a B2B solution for “financial institutions, multinational corporations, and asset managers.”
This means that the stablecoin will not be available for retail customers at the moment, but it may become available somewhere in the following months.
“The digitization of real-world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world,” said 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.”