A UK crypto exchange startup has revealed plans to launch a new cryptocurrency denominated in British pound to keep up with the “stablecoins boom,” Business Insider reported September 29.
The London Block Exchange, which deals in over-the-counter crypto trades and operates a crypto exchange, announced on Friday that an unnamed banking partner gave it the go signal to launch a new cryptocurrency called LBXPeg. Backed by the reserves of UK sterling, the 1:1 reserves will reportedly be held at the third party bank.
Benjamin Dives, CEO of LBX, told BI that a top accounting firm will regularly audit the reserves. He added that he thinks the LBXPeg will be the first-ever stablecoin 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 plans transpire amid a boom in the crypto world’s activity and interest in stablecoins. Stablecoins are cryptocurrencies equivalent to real-world assets like the dollar. The idea is to give digital coins the price stability of a traditional currency but still keep their ability to exchange and use information as well as their digital nature.
One example is Paxos, a blockchain-based fintech firm. The New York-based company recently announced that Binance will list their Paxos Standard Token (PAX) in their exchange. PAX tokens are the first-ever regulated crypto asset which is fully collateralized one-to-one against U.S. dollars.
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