IBM Backs Up A Dollar-Backed Token On The Stellar (XLM) Network

IBM has been one of the innovators in the crypto space.
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The company is always in the news for recent acquisitions as well as its plans in regards to various crypto projects. This time, the multinational technology company is in the news for backing up Stronghold, which is a San Francisco-based financial institution that has been developing an asset agnostic payment and trade ecosystem.

As of recently, Stronghold launched an asset-backed token on the Stellar (XLM) network, which is the first venture which supported USD anchor for the network. Every buyer interested to purchase this stable coin will be able to deposit US dollars with Stronghold’s partner bank (Nevada-based Prime Trust). This will let Stronghold issue tokens on a 1-to-1 ratio, as Reuters recently reported.

Stronghold also partnered with IBM Blockchain in order to identify the Stronghold USD uses in blockchain business networks. This partnership will test ways for financial institutions and other parties to become more efficient, safer and support faster transactions.

The Stellar protocol will be used to transact Stronghold USD and provide access to liquidity its exchange services. The co-founder and CTO behind Stronghold, Sean Bennett, recently announced:

“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.”

The vice president of IBM Blockchain, on the other hand, noted:

“The digitization of real-world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world. New types of fiat-backed instruments, like Stronghold’s USD token, have the potential to improve the backbone of international banking operations and payments, giving banks an easier way to integrate with public blockchain networks without significant changes to their core banking and compliance infrastructure.”

Stronghold is also a great project because it allows institutional investors to exchange USD for Stellar Lumens (XLM) and any asset within the Stellar network, according to the co-founder of Stronghold.