Thanks to a successful partnership with AlphaPoint (the New-York based digital assets exchange platform), London Block Exchange (British market dedicated multi-cryptocurrency trading platform) is proud to announce the launch of the first ever stablecoin pegged to the Great British Pound (GBP): GBP-Peg (GBPP), initially announced as LBXPeg. They already secured a segregated, onshore, and auditable UK bank account dedicated to this stablecoin. The ratio will be 1:1 (for every GBP present in this account, there will be one GBPP token on the blockchain).
Stablecoins are cryptocurrencies meant to minimize the effects of price volatility on the digital market. They are pegged (or linked) to traditional currencies (such as USD, EUR or JPY) or assets (like gold, oil and so on). The most common stablecoin already tradable on exchanges is Tether (USDT), a price-stable cryptocurrency pegged to the United States dollar.
Benjamin Dives, London Block Exchange CEO, declared: “GBPP will help boost mainstream usage of other cryptocurrencies by allowing investors to realize the technological benefits of instantaneous transactions, decreased volatility, and increased liquidity. We are excited to partner with AlphaPoint, a globally trusted brand with technology that will help us deploy and maintain a robust network in a trusted and compliant manner.”
With the crypto market as highly volatile as we all know it and digital currencies that appreciate/depreciate in a matter of hours, the demand for a working stablecoin is obvious. The tokenization of GBP will help businesses and traders both inside and outside the United Kingdom, as it will augment the transfer of capital across the world and create more investment opportunities.