IBM develops dollar-backed stablecoin on Stellar blockchain :

IBM develops dollar-backed stablecoin on Stellar blockchain

IBM has partnered with the startup Stronghold to launch a cryptocurrency stablecoin backed by the US dollar. Called Stronghold USD, the currency will rely on the Stellar blockchain platform and will be provided by the US FDIC.

According to a CNBC article, the IBM giant is preparing a US-backed stablecoin (1: 1 ratio) in collaboration with Stronghold, Prime Trust Asset Manager and the Federal Deposit Insurance Corporation (FDIC).

IBM's primary goal with the Stronghold USD stablecoin is to help banks process transactions faster and more securely.

IBM is partnering with Stellar and using the organization's blockchain platform to develop Stronghold USD. IBM had already announced last March want to use the Stellar blockchain to "compete with Ripple by offering payment solutions dedicated to banking institutions."

While Tether's highly popular TET (also backed by the dollar) stablecoin USDT is mostly used by crypto-investors to fight volatility, IBM hopes that the Stronghold USD token will be adopted en masse by banking institutions.

Following the recent and highly controversial success of the USDT, many organizations wish to develop their own stablecoin. The USDT is closely monitored for the real existence of its banknote reserve to cover the nearly USD 3 billion in circulation.

Through its partnership with the Federal Deposit Insurance Corporation (FDIC), IBM will be able to secure outstanding funds more transparently.

Last May, IBM developed the VERDE chip on the Stellar blockchain to help companies reduce their carbon footprint.