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IBM Is Helping Launch a Price-Stable Cryptocurrency Insured By the FDIC

The latest attempt to create a cryptocurrency pegged to the U.S. dollar, or "stablecoin," combines 21st-century technology with an invention from the Great Depression.

Announced Tuesday, a startup called Stronghold is launching USD Anchor, which will run on the rails of the Stellar blockchain and use its consensus mechanism to verify transactions. The token will be backed one-for-one with U.S. dollars held at a Nevada-charted trust company called Prime Trust, which in turn will deposit the cash at banks insured by the Federal Deposit Insurance Corp.