On Saturday, September 29, 2018, the London Block Exchange (LBX) announced the launch of a stablecoin pegged to the pound sterling in a 1:1 ratio. A new token called LBXPeg will be launched on the Ethereum blockchain.
Stablecoin is a type of digital currency that has a fixed rate, pegged to the price of a certain asset, for example, the US dollar, gold, oil.
A major British bank, which name, however, was not disclosed, has become the London Block Exchange's partner. LBX CEO Benjamin Dives said that the reserves will be checked regularly by a leading audit firm. He expects LBXPeg to be the first stablecoin pegged to the pound.
"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," said Benjamin Dives.
Over the past year, the number of stablecoins has increased significantly. This type of cryptocurrency is becoming more popular and popular, as users are not inclined to trust existing alternatives. Recently, the payment start-up Circle, sponsored by Goldman Sachs, has also issued its USD Coin (USDC) cryptocurrency, the rate of which is pegged to the US dollar. Platforms Gemini and Paxos also have introduced their stablecoins - Gemini Dollar (GUSD) and Paxos Standard (PAX).