Startup Stronghold is launching USD Anchor, which will run on the rails of the Stellar blockchain and use its consensus mechanism to verify transactions, but will be backed one-for-one with US dollars held at a Nevada-chartered trust company called Prime Trust which will have proper FDIC insurance. IBM is partnered with Stronghold and will explore further use cases of its token with financial institution clients. Stronghold also represents a further extension of the IBM and Stellar partnerships.
Back then IBM announced it had been working with the Stellar protocol and its native token, lumens, as a bridge currency between money transfer operators in a number of South Pacific island nations. Since then IBM has been busy expanding this into a larger production ready network. "We haven't announced anything yet but it includes regulated financial institutions in a whole bunch of other jurisdictions," said Lund. The reason IBM has (non-exclusively) partnered with Stellar is because its team has experience in cross-border payments and the protocol scales well with no mining in its consensus system, Lund said. While IBM is most deeply invested in is Hyperledger Fabric, the last 12 months have seen much additional focus on Stellar, said Lund, concluding: