On 17th July, International Business Machines [IBM] announced the launch of Stronghold USD, a cryptocurrency-USD pair that is created on the Stellar blockchain structure. Financial institution Stronghold announced on their Medium blog that they have collaborated with IBM to “explore uses for Stronghold USD within blockchain business networks on the IBM Blockchain platform”.
The partnership has been created to ‘bring in more stability to a volatile market’ and to ensure the existence of a mainstream digital currency. Jesse Lund, IBM’s Global blockchain Vice President in an interview with Reuters stated that:
“The engineering work has been done on this token and we have seen a little bit of the early release of it. What we really want to do is enable all sorts of digital transactional networks to settle their transactions with digital fiat currency on the same blockchain networks.”
IBM has stated that they believe commodities and services will become cheaper in the future with the implementation of blockchain technology in mainstream industries. According to the company, transactions will become cheaper, safer and faster and will ultimately benefit the consumer in the end.
The token ‘Stronghold USD’ is mostly targeted at MNC’s, the banking sector and asset consolidation organizations. Lund commented:
“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.”
Stronghold was founded in 2017 with the aim of building a streamlined trade platform. The decentralized nature of the platform has forced many people to trade on it. The company recently received a boost with funds coming in during a scheduled investment from Freestyle Capital. Sean Bennet, Stronghold’s CTO commented:
“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.”
Stronghold’s token ‘Stronghold USD’ is backed by Prime Trust, a trust company and is tasked with converting the cryptocurrencies to fiat money.
IBM has also partnered with Columbia University to set up a blockchain related department. The Columbia-IBM Center for Blockchain and Data Transparency will provide students with the opportunity to learn about the field of blockchain technology and provide them with internships and opportunities.
Stronghold USD is based on the Stellar blockchain which is a common financial platform that is designed to be secure and decentralized. The blockchain is also used more commonly for tokens that are needed for cross-border payments. Tammy Camp, the Founder of Stronghold commented:
“The token allows folks to do payments, foreign exchange between companies in a very seamless and frictionless and more secure way.”
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