A recently established UK firm has divulged plans to build a new cryptocurrency pegged to the British pound. The London Block Exchange, which is involved in OTC (over-the-counter) crypto trades and is working to establish a crypto exchange and card, revealed that it has gotten consent from an unidentified banking associate to release a new cryptocurrency, which is presently being named as the LBXPeg, backed by deposits of UK sterling.
The Pound reserves pegged to the coin will be maintained in an account at the third party bank guaranteeing coin holders a trustworthy backing of the British Pound. LBX’s CEO, Benjamin Dives, was also cited stating that the deposits will also be regularly reviewed by a topmost accountancy firm.
In addition he assumes the LBXPeg will be the original so-called “stablecoin” to be pegged to the pound.
Benjamin said
“We would be ready for the first crypto pound to be minted in the next 10 days. The primary use case will be a settlement for 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 crypto pound.”
Stablecoins – a favorite among investors and traders
Stablecoins rose to popularity last year after its relevance in crypto world was understood through Tether, a crypto pegged to the dollar. As these cryptocurrencies prices are pegged to less volatile assets, usually the dollar, they form a prime role in giving price steadiness of a conventional currency but still preserve their interoperability and electronic nature.
Therefore, they are celebrated by investors, traders, and exchanges as they offer brief security in offsetting the instability of cryptocurrencies. But gradually these appear to be there as a bridge between the conventional and digital monetary worlds as fresh speculators find solace in having them and acquire first-hand knowledge prior to hopping into crypto investing.
The requirement for these stablecoins is so enormous that according to an article published by crypto wallet provider Blockchain there are presently in excess of 50 stablecoin ventures under progress. The report states that 23 stablecoins (40%) are active and available for real-world use, while 34 stablecoins (60%) are currently at the pre-launch phase.
Thedocument also points out that the use of stable coins has been beyond comparison as
“The total market value of all stablecoins is $3 billion, or 1.5% of the total market value of all crypto assets; Tether comprises 93% of the all stablecoin market value”
Tether (USDT) remains as the second most actively traded crypto, with nearly 60% of Bitcoin’s daily trading volume. The crypto also became one of the top-10 crypto asset rankings by market value earlier this year.
As far as exchange listing is concerned, the report states
“Stablecoins are listed on over 50 different exchanges at present, with Tether featuring the greatest number of total individual exchange listings (at least 46). Stablecoins have had success gaining listings on major exchanges, with eight stablecoins (42% of live coins) featuring one or more Tier-1 exchange listings: Tether (6), TrueUSD (5), SteemDollar (4), NuBits (2), BitBay (2), Gemini (2), Paxos (2), Numins (1), STASIS (1), HelloGold (1)”
With demand for stablecoins rising exponentially in the US, a Pound pegged crypto would definitely make the competition healthier.