UK-Based Wirex Launches Visa Card Which Supports 26 Stablecoins
The UK-based firm Wirex announced on Thursday that it would launch 26 stablecoins on the Stellar blockchain network. Stablecoins are “pegged” to fiat currencies on a 1:1 ratio so they are intended to be less volatile than other coins that are influenced purely by supply and demand.
The network said that the coins will be backed by numerous fiat denominations. The coins will be backed by the U.S dollar, the Euro, and the British pound. Other currencies supported include the Hong Kong Dollar and the Singapore dollar.
The currencies will be able to be spent using the Wirex multi-currency Visa Card. The company, which is licensed by the Financial Conduct Authority (FCA), allows users to convert and spend cryptocurrencies wherever credit cards such as Visa is accepted. The total number of currencies the card supports is 18 which includes 8 cryptocurrencies and 10 fiat currencies.
Wirex also made atomic swaps possible in its ecosystem. This means that stablecoins can be converted instantly and at over-the-counter (OTC) rates. Remarking on the use of the card, the firm stated that it could be used in “remittances, token issuance and redemption, and merchant settlements.”
The rationale for Wirex to use the Stellar network over other blockchain networks was also provided. The reasons given were due to “the platform’s better security and scalability features, as well as lower costs for real-time transactions.” Furthering the relationship between Wirex and Stellar, the firm will also add Stellar Lumens (XLM) to the platform.
It should be noted that other large tech companies also use the Stellar platform for generating blocks and keeping information secure. IBM, for example, uses Stellar for its payment World-Wire. So far, IBM has signed six deals with banks to issue stablecoins on the platforms in just the last month.
The Wirex news comes after a wave of new fiat-backed cryptocurrencies over the last year, with a subidary eToro launching its own branded stablecoins alongside a full exchange several days ago.
The social investing platform eToro has launched its own cryptocurrency exchange The platform is being managed by eToroX, which is regulated by the Gibraltar Financial Services Commission.
At launch, the firm will provide support for bitcoin, bitcoin cash, and ether. Other currencies supported will reportedly include litecoin and dash. There will also be support for 37 crypto to fiat pairs.
The firm will also issue its own tokens. Branded as e-Toro, they will be pegged to fiat currencies such as the US Dollar (USDEX) the Japanese Yen (JPYX) and the eToro Euro (EURX). Additional coins are also planned in the future.
In addition to the stablecoins, the company also made an announcement that it would expand the amount of coins available for purchase. A company representative said that “more cryptocurrencies, stablecoins, and tokens will be added in the coming weeks.”
The managing director of eToroX Doron Rosenblum also said that the firm will work with other exchanges to encourage them to list their stablecoins for commercial and retail use.