British crypto startup Wirex Ltd. entered into a partnership agreement with Stellar with the purpose to integrate 26 stablecoins onto the Wirex platform. The company also announced support for the Stellar Lumens (XLM) token with Wirex Visa cards.
— Wirex (@wirexapp) 25 апреля 2019 г.
According to Wirex representatives, the stablecoins will be built on the Stellar blockchain, which will allow conducting cheaper transactions in real time, and the coins will be linked to a wide range of fiat currency: USD, EURO, GBP, HKD, and SGD. Users will be able to take the following advantages of this collaboration:
- international remittance;
- merchant settlements;
- instant token issuance and redemption;
- cryptocurrency hedging;
- conversion of stablecoins instantly to other stablecoins at over-the-counter (OTC) rates.
“Stablecoins have the potential to transform the payments space,” Jed McCaleb, co-founder of Stellar, said in a statement.
Stablecoins are a digital currency secured by the value of the underlying asset. Many of them are tied to certain fiat currencies in a 1: 1 ratio, while others may be tied to precious metals, such as gold, or even to cryptocurrencies.
They became a hit in 2018. According to the company Blockchain report, at the end of 2018, there were 57 active stablecoins in the digital space, and their total market value was estimated at $3 billion. Most popular: Tether, Paxos Standard, USD Coin, and Gemini Dollar.
According to the co-founder of Wirex Ltd, Pavel Mateev, unlike traditional bank transfers, which require considerable financial and labor costs, stablecoins represent a cost-effective and more efficient way to move funds around the world.
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