Since IBM announced they are supporting a stable coin affiliated to the USD, there have been a lot of gains in the market but Stellar Lumens (XLM) and Bitcoin (BTC) are the major beneficiaries. The IBM and Stronghold support is now taking shape and the new Stable coin will ride on the Stellar ecosystem.
IBM will make the stablecoin help its clients by monetizing their products and technologies going forward. This will boost bot Stellar and Bitcoin. Since the announcement was made public five days ago, XLM price has gone up by over 50% while Bitcoin has gained 19%. If the boost is anything to write home about, this could be a major breakout for XLM.
Asset Bases Stronghold USD and Stellar XLM
The stronghold USD token asset will be in a ratio of 1:1 in value to the green buck once deployed on the Stella network. To many crypto-sphere analysts, this will add the much needed liquidity in the market going into the future. The beauty of the arrangement is that the tokes will be under the custody of a state backed trust firm.
This arrangement is set to enable financial establishments get secure access to the digital coin arena. According to Sean Bennett, the CTO and co-founder of Stronghold:
“The process for seamlessly managing and trading assets of any form from digital to traditional currencies, needs to evolve as financial institutions are seeking ways to break into new asset classes like cryptocurrencies. Asset-backed tokens can provide seamless access to all currencies, improving the global movement of money.”
However, Jed McCaleb who is Stella co-founder added that the partnership will yield increased adoption and offer XLM a bigger global reach. There is a lot of focus on the Stellar network and the additional trust from IBM will turn out to be the best price and value boost that the platform has been missing.
The introduction neither of Stronghold token is a great step forward nor only for the Stellar ecosystem but the entire crypto verse. The beauty of the deal is that Stellar is not competing with convectional banking outfits but rather complementing them. With widespread adoption, each participant will benefit and the blockchain usability will gain more trust.
Stellar Lumens (XLM) will give IBM the cryptocurrency usability it lacks will the Stronghold USD will provide the stability the tech company needs and cushion it against the volatility of digital assets. Banks and merchants have been shying from crypto adoption and this could turn out to give them the confidence that has been lacking.
With the cryptocurrency market thriving, the usability of XLM will come in handy for IBM to grow its market share. This will in turn change the banking sector focus from Ripple to Stellar, a move that will shake the existing competition between the two blockchain outfits.
“The digitization of real-world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world. “New types of fiat-backed instruments, like Stronghold’s USD, have the potential to improve the backbone of international banking operations and payments’, giving banks an easier way to integrate with public blockchain networks without significant changes to their core banking and compliance infrastructure”, adds Jesse Lund, blockchain president at IBM.
Stellar Lumens seems to be basking on the limelight and still trading in the green for the last 24 hours and this could continue towards the end of the year. Many investors appear to be flooding to stake on XLM and this could mean a stable price and increased value.
At the time of reporting, the Stellar Lumens (XLM) was trading at $0.294921 after marginally gaining against the dollar and Bitcoin by 3.63% and 2.22% respectively. Bitcoin on the other hand is also trading on the green just shy of the $7,500 mark since the announcement and the ripple effect is being felt across the entire market.
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