Stronghold Exchange to Launch First USD Anchor on Stellar’s Network
Stronghold Exchange Set to Launch the First USD Anchor on Stellar’s Network
Stronghold exchange that is based on Stellar Lumens (XLM) has plans to launch the first USD anchor for the Stellar network. The exchange makes use of the Stellar network and its decentralized exchange protocol and mechanism.
This news was uncovered in the Reddit community platform although the exchange also hinted that the news was true in a tweet where a USD anchor is clearly visible on the Stellarterm.
Stellar is among seven other virtual currencies that will be made legal in Thailand according to the new rules of Thailand SEC. Stellar is a payment network that supports the use of its native asset referred to as Lumens. Stellar was initially forked from Ripple but since the introduction of its unique network-Stella Consensus network, the platform has gained popularity. The platform makes it easier to transfer money across borders by use of anchors.
What This New Development Means
The new development will be a revolutionary change for Stellar. Stellar Lumens is the 7th largest digital coin in the market and the fact that the coin will have a direct fiat on and-off-ramp will be revolutionary. Real USD will be withdrawn and deposited through the anchor. The USD will then be digitalized and exchanged for any digital coin on a platform built upon Stellar’s decentralized exchange DEX.
The greatest advantage of this development might be the reduced transaction costs. The operations costs of the transactions on the network will be greatly reduced. The anchor will make it possible to achieve a cheaper mode of exchange than the current options in the market.
The large fees that characterize deposit and withdrawal of funds in both centralized and decentralized exchanges is a growing complaint in the cryptocurrency space. For instance, Coinbase, which is a major exchange in the cryptocurrency space, attracts users due to its user-friendly interface and easy to deposit mechanism. However, users still complain about the high fees and delays that characterize many exchanges.
Another benefit that may result from the new development may be the decoupling of the Stellar’s native asset and network from Bitcoin’s volatility. The news might also attract speculators to Stronghold DEX.
Stronghold Exchange Support For Stellar
Stronghold is an exchange that has more than 20,000 users. The platform has continually supported the Stellar protocol since 2014. This is not the first time that the firm has launched a USD anchor as it did this in 2014. However, the anchor was closed as there was very little interest from cryptocurrency enthusiasts.
However, this time the launch is clearly set to attract a lot of attention. The firm has experience and expertise in the field and this time it seems their launch of a fiat anchor on the Stellar network is bound to pay off.
The platform has made an announcement that it will launch its own SDEX in July this year and that it will be professionally upgraded and get a makeover that will rival the functionality of Binance. Additionally, there are daily projects being launched on the platform that is built on the Stellar coin. This proves that the Stellar based exchange and the coin may continue growing.