Wirex, an FCA-regulated payments provider, announced this Thursday that it has entered into a collaboration with Stellar, which will see the release of 26 fiat-backed stablecoins which will be available for its more than two million users.
The crypto-orientated company says that the integration of Stellar-based stablecoins onto the Wirex platform represents a turning point for stablecoins, promoting them from a novel asset, to a practical one.
The payments provider also claims to be the first fiat and crypto payments company licensed by the Financial Conduct Authority (FCA) to release its own stablecoins, which brings further credibility to the asset.
Stablecoins, like that name suggests, are built to be more stable than traditional cryptocurrencies which are prone to large volatility. This is because their asset is pegged to a stable asset.
Commenting on the partnership, Pavel Matveev, the co-founder of Wirex said: “Joining forces with Stellar makes perfect sense for us. Both companies share a greater goal – encouraging the mass adoption of digital currencies and transforming the way people make payments. We are thrilled to add XLM to the Wirex platform and even more excited to release our industry-first Wirex stablecoins.”
Wirex and Stellar Partnership Brings Industry Firsts
The integration also poses a number of firsts for the industry, including the first stablecoins to be pegged to a number of major fiat currencies, such as the USD, EUR, GBP, HKD and SGD with exchange at interbank rates, the statement said. The new stablecoins can also be used in day-to-day life, the company said, if customers use Wire’x multi-currency Visa card.
The Wirex stablecoins are being built directly on Stellar and can be used for international remittance, cryptocurrency hedging, token issue and redemption and more.
“Stablecoins have the potential to transform the payments space,” added Jed McCaleb, Stellar cofounder. “We’re excited to be working with Wirex to launch its first stablecoins to help make money more fluid and open to everyone.”