Page 12 - July 2018 Disruption Report

DIGITAL CURRENCIES
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“The process for seamlessly managing and trading assets of any form from digital to traditional currencies, needs to evolve as financial institutions are seeking ways to break into new asset classes like cryptocurrencies,” said Stronghold’s co-founder Sean Bennett. “...Stable coins can provide seamless access to all currencies, improving the global movement of money. We’re honored to work with ...IBM to explore new ways to use Stronghold USD.”
“The digitization of real-world assets using blockchain can dramatically transform many forms of financial transactions conducted around the world,” said Jesse Lund, global vice president of IBM Blockchain. “New types of fiat-backed instruments, like Stronghold’s USD token, have the potential to improve the backbone of international banking operations and payments, giving banks an easier way to integrate with public blockchain networks without significant changes to their core banking
and compliance infrastructure. ... We’re really keen to explore the use of this—we’re calling this stable coin—which is essentially a fiat currency-backed digital asset or digital currency of sorts that’s actually backed by real money held in deposits at a chartered bank in the U.S.” (Blockchain, Tokens and Bitcoin, CBInsights, July 2018; BusinessWire, 07/16/18; VentureBeat, Dean Takahashi, 07/17/18; ZNet.com, Asha McLean, 07/17/18)
The Malta-based tokenization platform, STASIS, has launched EURS, a stable coin backed by the Euro. “STASIS created EURS token following the demand from institutional clients, high net-worth individuals, and funds that trade digital assets,” said STASIS CEO Gregory Klumov. “[W]e think that there is a lack of price-stable cryptocurrency with the visible transparency of reserved assets. The advanced 3-level asset verification process of EURS makes it stand out from any of the stable coin projects currently available on the market.” Currently, 291,000 EURS are in circulation and are traded on London-based crypto exchange DSX.
STASIS’ collateral reserve is being managed by an unnamed “AAA-rated European institution” using a conservative, duration-distinguished bucket strategy, where reserves are broken down into several periods (buckets) and analyzed to determine those who subscribed and redeemed. The name of the institution that is managing STASIS’ reserves will be disclosed at a later date. (Bitcoin Magazine, Jimmy Aki, 07/16/18)
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