London Blockchain Exchange (LBX), a UK-based blockchain startup, has revealed that it has received approval for its plan to launch the first stablecoin that is backed by the Pound Sterling (GBP).
LBX to launch the first stablecoin backed by Pound Sterling
LBX, a London based blockchain start-up that has been offering over the counter trading services has announced that everything is in place for the launch of their stablecoin, the LBXPeg.
On September 29, the company announced that it had received permission from an unnamed banking partner to launch their cryptocurrency, with the bank acting as a reserve for the cash backing the coin at a rate of one-to-one.
The company further announced plans for a cryptocurrency exchange and a crypto-card.
For its stablecoin, the company explained that it would make use of the Ethereum Blockchain and the LBXPeg will be an ERC-621 token, which is designed based on the ERC20 token standard.
To ensure that transparency and accountability are at the forefront of the service, LBX further added that an accounting firm has been hired to conduct regular audits of the stablecoin’s books.
LBX started offering OTC cryptocurrency services in November 2017 and has enjoyed explosive growth over the past few months.
LBX CEO Benjamin Dives, while commenting on this development, stated that the main use case for the project will be the settlement of OTC trades in the London market.
It would also focus on commonwealth exchanges without access to fiat banking and will be available for securities tokens who want to pay dividends in cryptopounds.
Crypto companies turn to stablecoin
Some cryptocurrency companies have turned their attention to stablecoins, as they believe that the cryptocurrency ecosystem desperately lacks trust and accountability.
Goldman Sachs-backed Circle also launched its stablecoin, the USD Coin (USDC) two weeks ago.
The rise of stablecoins could be attributed to controversies surrounding Tether, with many experts expressing doubts that the company has enough U.S. Dollars in reserve to account for all USDT tokens issued.