A UK startup is planning to develop a ‘crypto pound’ as the sector goes crazy for ‘stablecoins’

  • Sep. 29, 2018, 8:00 AM

  • 170


London Block Exchange CEO Benjamin Dives
London Block Exchange CEO
Benjamin Dives.

London Block
Exchange


  • The London Block Exchange plans to launch a new
    cryptocurrency pegged to the pound: LBXPeg.
  • LBXPeg is a so-called “stablecoin” and they’re booming in
    popularity in crypto.

LONDON — A UK startup has announced plans to launch a new
cryptocurrency pegged to the British pound as interest in
so-called “stablecoins” booms.

The London Block Exchange, which
does over-the-counter crypto trades and operates a crypto
exchange, said on Friday that it had received permission from an
unnamed banking partner to launch a new cryptocurrency, dubbed
the LBXPeg, backed by reserves of UK sterling. The one-for-one
reserves will be held in an account at the third party bank.

LBX’s CEO, Benjamin Dives, told Business Insider the reserves
will also be regularly audited by a top accountancy firm. He
added that he believes the LBXPeg will be the first so-called
“stablecoin” to be pegged to the pound.

“We would be ready for the first cryptopound to be minted in the
next 10 days,” Dives told Business Insider.

“The primary use case will be 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 cryptopound.”

LBX’s latest plans come amid a boom in activity and interest in
“stablecoins.” These are cryptocurrencies where the price is
pegged to real-world assets, usually the dollar. The idea is to
give cryptocurrencies the price stability of a mainstream
currency but still retain their interoperability and digital
nature.

Circle, the cryptocurrency company backed by Goldman Sachs, this
week became
the first issuer of US Dollar Coin, a new
stablecoin
pegged to the dollar it helped to develop.
The Winklevoss
twins, who helped develop Facebook, have also
announced their own
stablecoin
project
. A
report from Blockchain
earlier this week said there are over
50 stablecoin projects currency in development.

Stablecoins shot to popularity within crypto last year thanks to
the rise of
Tether, a cryptocurrency pegged to the dollar.
Many crypto
exchanges have been shut out of the mainstream financial system
by banks due to compliance concerns.

Tether allows them to offer dollar-like liquidity even though
they cannot accept dollar deposits. Blockchain’s report
found around 60% of bitcoin trades now occur in Tether globally.

Get the latest Bitcoin price here.>>

Follow Fintech Briefing and never miss an update!

Get updates in your inbox

Subscribe to Fintech Briefing and never miss an update!

Read More

Did you like this?
Tip Cryptos UK with Cryptocurrency

Donate Bitcoin to Cryptos UK

Scan to Donate Bitcoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Cryptos UK

Scan to Donate Bitcoin Cash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Cryptos UK

Scan to Donate Ethereum to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Cryptos UK

Scan to Donate Litecoin to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Cryptos UK

Scan to Donate Monero to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Cryptos UK

Scan to Donate ZCash to Cryptos UK
Scan the QR code or copy the address below into your wallet to send some ZCash:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.