London Startup To Launch First Tokenized Pound
A British project, called London Block Exchange, plans to release a digital pound LBXPeg, on the wave of stablecoin popularity.
LBXPeg Token will be the first digital coin tied to the rate of the British pound sterling.
According to Benjamin Dives, the head of the startup, the company has received an approval from the banking partner and will launch the stablecoin, backed by an equivalent amount of real pounds. Reserves will be kept by a third party in another bank. Dives also stated that one of the leading audit companies will conduct audits and monitor the availability of the claimed fiat currency.
Startup London Block Exchange conducts over-the-counter transactions and also runs a crypto platform. The company's head expects that the launch of the first “cryptopound”, that they have developed, will be possible in 10 days.
He added that the token will be primarily used for over-the-counter trading in the London market. LBXPeg will also be applicable on those platforms from the UK and Commonwealth countries that do not work with fiat currency. Dives said that the new stablecoin will also serve as a means of payment for purchasing securities.
The decision to launch the "cryptopound" was reportedly made by the company in connection with the surge in stablecoin popularity. In September, the Winklevoss brothers, founders of Gemini crypto exchange, released their own token, Gemini dollar (GUSD), tied to the US dollar rate.
Also the team of Circle has recently announced the launch of a tokenized US dollar.
Previously, an economist from Berkeley revealed the disadvantages of stablecoins.