IBM is working with financial services provider Stronghold on a stablecoin, or stabilized cryptocurrency, pegged to the U.S. dollar.
Reuters reports the stablecoin, Stronghold USD, launched on the Stellar blockchain platform. Buyers of the coin will deposit dollars with the company’s partner bank, Nevada-based Prime Trust, for Stronghold to issue the tokens based on a 1-to-1 ratio.
In the case of Stronghold USD, “IBM will explore use cases with business networks that we have developed, as a user of the token. We see this as a way of bringing financial settlement into the transactional business network that we have been building,” Jesse Lund, IBM’s vice president of global blockchain, told Reuters. Read more here.