London Block Exchange (LBX) Announced Creation of New Pund-Pegged Stablecoin
The London Block Exchange (LBX) has announced plans to create a new stablecoin that would be linked to the pound sterling (GBP). The exchange platform is based in London’s Canary Wharf and the stablecoin will be known as LBXPeg.
The company believes that this stablecoin is needed due to the fact that other stable cryptocurrencies in the market do not work in the same way and have ‘opaque management structures, distribution schedules and auditing processes.’
Indeed, the market has several stablecoins, including Tether (USDT), that were involved in different controversies. USDT was not able to provide clear information about its funds and how it operates. Tether did not want to undergo a full audit, something that raised concerns among investors since there are over $2.8 billion USDT in circulation.
The new LBXPeg stablecoin will be powered by the Ethereum blockchain since it offers transparency and efficiency. Moreover, it will be backed by GBP that will be held by the firm in a segregated bank account. Additionally, the company explains that it will be also pegging the currency to euro and dollar accounts with the intention to improve stability and its scope.
The company explains that stablecoins are a great tool for those investors that are worried about volatility in the cryptocurrency market.
Recently, the Gemini cryptocurrency exchange created by the Winklevoss twins launched its own stablecoin known as Gemini Dollar (GUSD). Tayler and Cameron Winklevoss were able to release this currency to the market since they received approval from the regulatory agencies from the state of New York.
Back in August, the Union Bank AG of Liechtenstein become the first bank around the world in issuing a stablecoin. The Union Bank Payment Coin is pegged to the Swiss franc, something that provides stability and recognition.
LBX offers an app for users and customers to buy and sell different virtual currencies using the pound sterling. The company received a license by the British Financial Conduct Authority.
Furthermore, in March 2018, the firm joined the ‘Faster Payments Service,’ a payment-clearing system that was invented by local banks with the intention to replace the ‘BACS’ system. Additionally, in May the company added other virtual currencies to its platform including Bitcoin Cash (BCH) and Ethereum Classic (ETC). In this way, the platform had six cryptocurrencies for customers to trade.
There are several stablecoins in the market. However, just a few of them are recognized and regulated. The LBXPeg will be a key player in the market providing stability and trustworthiness to investors.