Recently there is new trend emerging in form of stable coins. According to recent reports, there are at least 57 stable coins have been released or currently in the development phase. A stable coins is a crypto currency that is attached to the value of an underlying asset like dollar or euro. They are called stable coins because the value of these crypto currencies are kept in accordance to some other underlying asset.
Tether coin was the first stable coin successful to attract investors. It has become the 8th largest crypto coin by the market capital and has highest daily trading volumes. There has been a lot of controversy about the company behind Tether. They have also been accused of Bitcoin price manipulation.
The other coin is Tiberius coins. The coin is unique in the terms of asset it is associated with. Unlike other coins, it is not associated with one asset, but a combination of seven metals gold, platinum, tin, nickel, cobalt, aluminum and copper backed it. Instead of underlying the digital asset with one currency, they choose to link it with metals to give the coin diversification, to make it more stable and attractive for investors.
LBXPeg was the first crypto currency to be tied to the market value of the Pound sterling on a 1:1 basis. It will allow users to transfer the digital equivalent of pound quickly and easily through a decentralized network. It will make the money transfer secure, reliable and authenticate. LBX uses Ethereum blockchain to develop, distribute and manage their crypto chain. LBXPeg is an ERC-621 token which will allow the required flexibility in the total supply to match the quantity being held in the bank. They also plan to issue more stable coins backed by EUR, USD to improve its global scope and range of investors. Circle is another stable coin backed by USD. Its an ERC-20 token available for trade on company’s exchange. According to Circle CEO Jeremy Allaire,
Market infrastructure like stablecoins will become the base layer that supports every financial application. It has to be legitimate, trustworthy, built on open standards. We are solving a lot of these fundamental problems that exist. That’s a huge difference from something like Tether, and we think the market will very quickly gravitate to that.