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Stellar Lumens [XLM]’s technology is now live on IBM’s blockchain platform strategy

Sthuthie Murthy



Stellar Lumens [XLM]'s technology now live on IBM's blockchain platform strategy
Source: Pixabay

As announced in October last year, the Stellar-IBM partnership was meant to be used to improvise IBM’s cross-border payments. They wanted to make international payments easier and faster with the help of the crypto world and Stellar technology was chosen. Apart from IBM, many large banks and financial institutions have followed the same track and tied up with crypto networks lately.

Jesse Lund, IBM’s leader for blockchain market development and digital currency strategy declared:

“Stellar is part of the IBM Blockchain platform strategy.”

The information and technical details have remained indoors as the cryptocurrency ecosystem is flooded with new partnerships every other day, and a lot of them are dedicated to cross-border payments. Hence, most of them prefer not to ascribe too much definition to the announcement.

But in a recent Reddit Ask Me Anything session [AMA], Lund gave out a huge cart of details on how exactly IBM is working with Stellar Lumens.

Lund posted on Reddit:

“My name is Jesse Lund and I’m the Head of Blockchain Solutions, Financial Services at IBM. I lead IBM’s blockchain market development, digital currency strategy, solutions engineering and client engagement for banking and financial services. Ask Me Anything about blockchain and cryptocurrency and I’ll answer via livestream”

Stellar Lumens also tweeted regarding the same:

“Probably banks will start to refocus on what they were invented for– safeguarding deposits, paying a decent low-risk rate of return and making loans from those deposits… Charging fees simply to intermediate payments is lame.”

Stellar Lumens' tweet

Stellar Lumens’ tweet

Stellar Lumens [XLM], is currently priced at $0.23 after losing 0.59% since the past 24 hours. The current market cap is worth 4.9 billion while retaining its 8th position in the market.

As a summary of the endless highlights and unanswered questions, the key points are:

  1. Stellar is already live on IBM for cheaper and quicker payments across the borders.
  2. The chances of Stellar Network being the first to see central bank issued digital tokens is very likely.
  3. Stellar Lumens are intended to be the primary bridge asset in IBM’s universal payments solution.
  4. IBM has no immediate plans of giving out its own tokens, instead will be pushing XLM as the coin to its clients.
  5. IBM is building its own solutions as an extra layer above Stellar system while Stellar is an integral part of IBM’s strategy for the future.
  6. IBM aims to use Stellar in direct competition with Ripple to take over the cross-border transactions. They already have a long list of clients ready to go live with Stellar Lumens international transactions in Q2 2018.

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Sthuthie Murthy is a full-time reporter at AMBCrypto. She has been researching and writing about the Blockchain technology for a year now. Her passion for blockchain has led her to be a part of AMBCrypto's news reporting team. She does not hold value in any cryptocurrencies currently.


Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report




Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
Source: Unsplash

Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.

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