Breaking News – First USD Anchor on the Stellar (XLM) Network
In an incredibly exciting development for Stellar Lumen’s holders and cryptocurrency supporters, Stronghold – an exchange utilising the Stellar network’s inbuilt decentralised exchange mechanism and protocol – is launching the networks first USD anchor. Uncovered by members of the Reddit community, and hinted at by the company, a USD anchor can clearly be seen on Stellarterm.
Stronghold’s hint, on 8th May
— Tammy Camp (@TammyCamp) May 8, 2018
Unlike stablecoin swap mechanisms such as Tether, real USD will be deposited or withdrawn through the anchor, and then digitised and exchanged for any digital asset on a platform built upon the Stellar protocol’s decentralised exchange (DEX). Furthermore, because of the vastly reduced operation costs of transactions on the network (currently 1 XLM powers roughly 100,000 transactions), the USD anchor will provide a much cheaper mode of exchange than current market options.
Stronghold has long been a supporter of the Stellar protocol, and involved with the founders since 2014. After initially launching a USD anchor in 2014, the company decided to close that particular functionality due to general lack of interest from the space. However, their expertise and experience within the field have clearly paid off, as they will (again) be the first to launch a fiat anchor onto the network.
A complaint often levelled against both centralised and decentralised exchanges is that funds can still be hard to deposit and withdraw, attracting large fees in doing so. Coinbases’ dominance as arguably the main gateway to the cryptocurrency space is mostly attributed to its user-friendly interface and easy deposit mechanism. High fees and delays are often a complaint.
The 7th most valuable cryptocurrency having a direct fiat on-and-off ramp will certainly be a game-changer, and may go some way towards decoupling its native asset and network from Bitcoin’s volatility. Whether this news will attract new speculators to Stronghold’s DEX is another matter. However – with the foundation’s announcement of its own SDEX being launched in July and receiving a professional-grade trading platform makeover, to rival the UI and functionality of Binance, and almost daily news of projects built on Stellar – it seems that this particular protocol and digital currency will continue going from strength to strength.
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