Crypto stablecoins, which act as alternatives for the dominating Tether (USDT), continue to pop up at least once a month recently. And the latest coin to hit the market involves the founder of popular exchange OKEx, Star Xu. The CEO of OK Group today announced that his company is backing a new cryptocurrency that could be pegged to the U.S. dollar, in a partnership with SEC-regulated custodian Prime Trust.
I’m very excited about the strategic partnership with @PrimeTrustCo. We will carry out an in-depth collaboration and offer diverse, secure and regulatory compliant services with Prime Trust. I look forward to leveraging our synergies. https://t.co/omrIt2SI5j
— Star Xu (@starokcoin) March 28, 2019
Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, the explosion of stablecoins is seen by many as a step to further the adoption process of cryptocurrencies, as it would give users an introduction to the main benefits of blockchain technology without having to experience extreme market volatility.
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Las Vegas-based Prime Trust – the same state-chartered bank that supports other competing stablecoins – is already famous at the blockchain space thanks to its back-office solutions. The company began its Bitcoin storage service in July, and then added support for Ethereum and ERC-20 tokens.
Prime Trust and OK Group signed a strategic investment agreement this month. OK Group is our lead strategic investor and plans to launch a compliant stablecoin #OKUSD, which will operate #OKChain in the future @starokcoin
— Prime Trust (@PrimeTrustCo) March 28, 2019
Binance, the world’s largest cryptocurrency exchange by traded value, also continues to expand stablecoin options for its clients. The exchange has added many non-volatile coins to its platform over the past few weeks, most recently supporting Circle’s USDC.
Prime Trust, however, is not the only company providing infrastructure and operational cryptocurrency custodianship for the wider investment management industry. Leading cryptocurrency exchange Coinbase, Japanese financial holdings company Nomura and most recently SIX Group, the owner of SIX Swiss Exchange, have all recently launched similar services for institutional investors.