IBM’s World Wire payment wiring service powered by the Stellar blockchain network goes live today, March 18. IBM’s Blockchain World Wire (BWW) is a cross-border payments network and was launched in collaboration with Stellar (XLM) last year in September 2018.
The World Wire network has currently 44 international banks onboard who wish to leverage blockchain and cryptocurrency services for instant and low-cost fund transfers. Addressing a keynote at the ongoing Money 2020 Asia in Singapore, Vice President of IBM Blockchain - Jesse Lund said that six global banks have signed the letter of intent to issue their own stablecoins, reports Cheddar.
Issuing Stablecoins on IBM’s World Wire Blockchain Network
A few names include South Korea’s Bank Busan, Brazil’s Banco Bradesco, and the Philippines’ Rizal Commercial Banking Corporation. The stablecoins issued of these banks shall be backed by their national cryptocurrencies,
For other three unnamed banks, the stablecoins will either be in Euro or Indonesian Rupiah, says Lund. Besides the collaboration with six global banks, IBM has also joined hands with San Francisco-based startup named Stronghold.
Stronghold’s USD-backed stablecoin developed in partnership with Stronghold will be the first one to be launched on the Stellar Blockchain network. Lund also noted that the company is planning to expand its World Wire blockchain network by on-boarding more assets. He said:
"We let the market drive the expansion and selection of the network incrementally. We are really feeling excited that we are on a roll to build something new and revolutionary that's really going to change the landscape of cross-border payments."
At present, BWW support over 47 currencies for cross-border payments across 72 countries. It Stellar-powered blockchain network uses XLM tokens as an efficient and immutable settlement instrument for fiat currencies between different institutional parties.
Unlike the Ripple, IBM isn’t the issuer of the chosen settlement asset between the two parties. Lund said: “Our view for stablecoins is really that they should be more broadly accessible and what World Wire seeks to do is to provide fungibility of digital assets across financial institutions.”
Expressing his views on the use of cryptocurrencies for payment settlements, Lund said: “Personally, I think cryptocurrencies could very well serve as a viable settlement instrument. We’ve started with Lumens, which is the native asset of the Stellar network, but we already have the capacity to introduce other cryptocurrencies that could include Bitcoin or Ether. We will add more digital assets based on client demand and participants on the network”.