IBM is experimenting with cryptocurrency, backs new ‘stablecoin’
IBM is partnering on a digital token, that’s got high-end business users in its sights…
The latest big name from the world of technology to get involved with cryptocurrency? That’d be IBM, who has announced a union with a financial technology start-up by the name of Stronghold. Between them, they’re throwing their weight behind a cryptocurrency called Stronghold USD.
It’s billed as a ‘stablecoin’, a term used to denote digital tokens that are tied to some degree to an already-in-existence government-backed currency. In this case, US dollars. The thinking is that you get the benefits of a digital currency, without the volatility that the market has clearly showcased over the past six months.
Stronghold USD also involves the services of partner bank Prime Trust, and Stronghold will thus issue tokens on a 1-to-1 ratio, as per the official announcement.
The Stronghold USD currency is particularly targeting business users, financial institutions and asset managers, with a view to possibly making it available to retail customers “in the coming months”.
“The token allows folks to do payments, foreign exchange between companies in a very seamless and frictionless and more secure way”, explained Tammy Camp, the founder and chief executive of Stronghold.
IBM, separately, has also announced that it’ll partner with Columbia Univeristy to open the Columbia-IBM Center For Blockchain and Transparency.
Stronghold USD, meanwhile, is available on the Stellar blockchain platform.