LBXPeg, the London Block Exchange crypto pound project

LONDON – A UK start-up has announced plans to launch a new sterling-linked cryptocurrency to spark growing interest in burgeoning "stablecoins".

The London Block Exchange, which carries out over-the-counter crypto transactions and operates crypto-exchange, said Friday it has received permission from an anonymous banking partner to launch a new cryptocurrency, dubbed LBXPeg, backed by sterling reserves. One-for-one reserves will be held in an account at a third-party bank.

LBX CEO Benjamin Dives told Business Insider that the reserves would also be audited regularly by a major accounting firm. He added that he thought the LBXPeg would be the first "stablecoin" to be attached to the pound.

"We would be ready for the first cryptopound to be hit in the next 10 days," Dives told Business Insider.

"The main use case will be the settlement of OTC transactions in the London market, then the Commonwealth exchanges where there is no fiduciary bank, and then the securities tokens that want to pay dividends. in a cryptopound. "

The latest LBX projects are part of a growing business and interest environment for "Stablecoins". These are crypto-currencies whose price is indexed on real assets, usually the dollar. The idea is to give crypto-currencies the price stability of a traditional currency while maintaining their interoperability and digital nature.

Circle, the cryptocurrency company backed by Goldman Sachs, this week became the first issuer of US Dollar Coin, a new dollar-indexed stablecoin it helped develop. The Winklevoss twins, who helped develop Facebook, also announced their own stablecoin project. A Blockchain report released earlier this week revealed more than 50 projects under development in the capital.

Last year, Stablecoins gained popularity in crypto thanks to the rise of Tether, a cryptocurrency linked to the dollar. Numerous encryption exchanges have been excluded from the traditional financial system by banks due to compliance issues.

Tether allows them to offer liquidity comparable to that of the dollar even if they can not accept deposits in dollars. Blockchain's report revealed that about 60% of bitcoin transactions now take place in Tether globally.