- Sep. 29, 2018, 8:00 AM
London Block Exchange CEO
- 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
Circle, the cryptocurrency company backed by Goldman Sachs, this
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
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.>>
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