Oct 2, 2018 at 08:30
Oct 2, 2018 at 15:12 UTC
London Block Exchange Launching Crypto Pound Backed Stablecoin
Stablecoin has proved to be the best way to have a stable value to the asset. Stable coins have eliminated the uncertainty that existed with the cryptocurrencies. Maybe this is the reason that London Block Exchange (LBX) is planning to release the world’s first GBP backed stablecoin.
The company, on Friday, stated they are positive with a launch of LBXPeg after the permission from an anonymous banking partner. This bank is going to be responsible for holding the one-to-one reserves of the new stablecoin.
The London Block Exchange offer Over-The-Counter (OTC) services and also teach about crypto “College Of Crypto” and claim themselves as the “only London-based cryptocurrency exchange offering safeguarded UK Banking.”
Dives said the LBXPeg would be centralized around:
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.
According to the company for the development and distribution of the stablecoin Ethereum’s blockchain would be used initially.
For now, LBXPeg will be an ERC-621 token built around the ERC-20 standard. The company is also giving thoughts to see if they could use the crypto to Euro or U.S. Dollar that will eventually help them boos the scope and stability.
The company said due to the lack of trust in current projects LBXPeg proves to be a necessary step. This absence of trust has propelled interest in stablecoins. The company also stated the current of the stablecoin in the market is not as good as these are inadequate for the needs of businesses, traders and consumers.
The number of stablecoin have jumped largely over the last few months and they have become popular as they help people to jump in and out of positions without having to worry about capital gains taxes. Circle, a crypto finance company released their USD Coin (USDC) stablecoin which is also collateralized with the USD at a 1:1 ratio. It was approved by the New York Department of Financial Services for stablecoins from Gemini and Paxos.