London Block Exchange To Launch GBP-Backed Crypto Stablecoin
According to the London Block Exchange, they already obtained permission to develop and launch a GBP-backed crypto stablecoin dubbed as LBXPeg. Even more, the startup’s CEO, Benjamin Dives, said on Business Insider that the so-called “cryptopound” would come out within ten days.
“LBX is proud to announce the worlds first GBP backed stablecoin,” said the London Block Exchange on Twitter.
The startup also announced that it obtained the backing of an undisclosed bank in the UK on Friday. Accordingly, the London Block Exchange can go on with the development of the new GBP-backed stablecoin. That bank would only have the responsibility of holding the one-to-one reserves for the LBXPeg.
Also, Benjamin Dives, the London Block Exchange CEO, stated that a leading accountancy company would frequently audit the reserves that back the new “cryptopound” stablecoin.
With OTC (over-the-counter) services and educational programs (College of Crypto), the London Block Exchange is the “only London-based cryptocurrency exchange offering safeguarded UK Banking,” as the startup describes itself.
London Block exchange to launch GBP-backed stablecoin, LBXPeg, also known as the “cryptopound”
“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.
According to a press release from LBX, the London Block Exchange would use the Ethereum (ETH) platform to develop and distribute the new “cryptopound” stablecoin. In this regard, they also announced that the LBXPeg would be an ERC-621 token developed around the ERC-20 standard.
Besides, the London Block Exchange would like to also tie the new GBP-backed stablecoin to Euro and the US Dollar to boost stability and adoption.
This new GBP-backed stablecoin, dubbed as LBXPeg or “cryptopound,” is just another example of the so-called stablecoin rush that spread across the world. According to recent studies in this direction, stablecoin issuance rates skyrocketed in the last 18 months.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.