• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: Breaking: Bitcoin Repayment Plan Gets New Deadline From Mt. Gox Trustee
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: Bitcoin Repayment Plan Gets New Deadline From Mt. Gox Trustee
IBM

FDIC-rypto? IBM, Stronghold to Launch First Insured Stablecoin

Georgi Georgiev by Georgi Georgiev
5 years ago
in News, Altcoin News, Companies, News teaser
0

IBM has partnered with fintech startup Stronghold to launch a stablecoin pegged to the US Dollar. The cryptocurrency will be tied to government-backed fiat deposited at banks covered by the Federal Deposit Insurance Corp (FDIC).


Another Stablecoin in the Making

A fintech startup called Stronghold is launching a new cryptocurrency pegged to the US Dollar, reports CNBC. “Stronghold USD”, as the new cryptocurrency is called, will be backed one-for-one with US Dollars which are held by blockchain-focused asset management company Prime Trust. The charted firm will deposit the money at banks which are insured by the FDIC.

Stronghold USD - a new stablecoin pegged to the US dollar

IBM is partnering up with the fintech startup and will explore ways of helping financial institutions and banks process payments quicker and more securely.

The project is one of the few attempts to reduce the volatility which is commonplace within the cryptocurrency market. Stronghold’s CTO, Sean Bennett, said in a recent press release:

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 […] 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.

Stronghold’s stablecoin will be underpinned by the Stellar network, which was developed by former Ripple executive Jed McCaleb.

Good or Bad News?

Stablecoins are seen as an attempt to dampen the volatility in the cryptocurrency market by pegging them to existing, more stable assets, essentially tokenizing the latter.

However, despite the stability that they pose, experts have also revealed a fair number of drawbacks to the concept, including the inherent dependency on the stability of the underlying asset, as well as the need to trust a centralized third party.

Stablecoins - Good or Bad News?

Another significant drawback is the comparisons that will inevitably be drawn between Stronghold and Tether – a stablecoin issuer that has found itself mired in controversy. The company behind USDT, Tether was accused of not having the adequate USD reserves to back its cryptocurrency.

A recent transparency report issued by Tether revealed that a US-based law firm independently confirmed that the company did, in fact, have the required amount of USD, The uncertainty of Tether’s US Dollar reserves, coupled with allegations of manipulating Bitcoin’s prices, is still a cause for doubt among some in the crypto community.

While superficially similar to Tether, it is worth noting that Stronghold’s stablecoin reveals certain key differences to USDT. For once, the former is covered by the FDIC. Additionally, the involvement of Prime Trust – a state-chartered trust company – should be enough to give investors the peace of mind that Stronghold USD is properly and fully backed.

What do you think of the new stablecoin which is to be issued by Stronghold? What will IBM bring to the table? Let us know in the comments below!


Images courtesy of Pixabay, Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Georgi Georgiev

Georgi Georgiev

Related Posts

BitBoy

Crypto Influencer ‘BitBoy’ Arrested Live On YouTube – Here’s What Happened

2 days ago
Upbit

Upbit’s Dark Hour: Fake APT Tokens Wreak Havoc In South Korea

3 days ago
Barclays

Crypto Investor Barclays Announces Closure Of UK Accounts For British Expats

5 days ago
Friend.tech

New Report Dives Into The Good, The Bad, And The Ugly Side Of Friend.Tech

5 days ago
crypto

Crypto Clients In China Targeted As Singapore Expands Money Laundering Probe

1 week ago
TikTok

TikTok Faces Challenge As Elon Musk Crypto Scams Multiply

1 week ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • 5 Cryptos to Buy to turn $1 to $25

    58 mins ago
  • Toncoin (TON) Outranks Dogecoin (DOGE), Joins Top 10; Could...

    5 hours ago
  • Crypto Analysts Speak Up: It’s The Best Time to Buy...

    5 hours ago
  • The 6 Best Cryptocurrencies To Buy Now – Top 2023...

    5 hours ago
  • Everlodge Brings Luxury Real Estate to the Masses, Stacks...

    7 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.