The British start-up London Block Exchange (LBX) announced that is releasing a new stable coin. According to them, the cryptocurrency is linked to the value of the British pound sterling. After in the past months we’ve seen two proposals for new stable coins connected to the USD, now the British project is seeking to bring the pound on the crypto market.
The LBX declared on Twitter that they will launch the first stable coin to use the pound sterling as a reference. LBX has received the support for the initiative from a bank with which it has also created an alliance. However, the crypto exchange did not give any details about the background of the business.
“We would be ready for the first crypto pound to be minted in the next 10 days,” said the CEO, Benjamin Dives, in an interview.
The LBX is a crypto trading platform that has been operating in London since November 2017. So far, the LBX offers over-the-counter trading in Bitcoin, Ethereum, Litecoin, and XRP. Soon the first sterling pound coin will be added to the portfolio of the exchange.
“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.”
The startup declared that it wishes to create and have a cryptocurrency to represent the British pound. The stable coin format has become more popular in the crypto scene since the launch of tether, which is tied to the value of the dollar. The existence of such a coin is facilitating in some cases the day and swing trading since the users can exchange their profits into a stable coin rather than in BTC or ETH, and reenter the game without risking anything.
Tether has managed to break into the top 10 most capped coins in the past year. Tether’s rise might be due to the small total market capitalization of the crypto market. On the other hand, the consistently high trading volume of tethers shows the importance of a stable coin for the crypto ecosystem.
So it is not a surprise that other companies have started to issue stable coins. Besides USD and the GBP other projects are proposing stable currencies for the euro area.