Enterprise-grade payments for permissioned blockchains

Earlier in the week startup Stronghold announced another dollar-pegged token. Some in the enterprise world equate these ‘stablecoins’ with cryptocurrencies and aren’t interested. This leads to the question: what would be palatable for enterprises?

The need for an enterprise-grade settlement token

One of the oft-touted benefits of blockchain payments is speed. But in many economies, you can make instant domestic bank payments. The real advantage is the speed of the entire transaction process. A typical sequence with conventional transactions is to agree to a deal, wait for payment, then deliver. If the payment part isn’t on a blockchain, sometimes the transaction needs to wait until the payment confirmation. That eats into the benefits of automation. But if the settlement uses a token to represent a bank balance, then the entire transaction completes in almost real-time. Techies call this an atomic transaction. It’s all or nothing, no payment no transaction.

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