IBM Launches Blockchain World Wire using Stellar, partners with six banks to launch stablecoins or tokens
- By Pierre-Alexandre
March 19th, 2019
IBM, the US-based tech giant, has announced the launch of its Blockchain World Wire, a real-time global payment platform explicitly designed for regulated financial entities such as banks. The service has kicked off in a good way with six banks committing to use it.
IBM launches blockchain World Wire
IBM has increased its intent to boost cross-border transactions and remittance service amongst banks using blockchain technology by starting the Blockchain World Wire Service. The platform has gone live in 72 countries across the globe and now has 47 currencies and 44 banking terminals under it.
The Blockchain Manager at IBM, Marie Wieck, stated that the company is happy to be at the forefront of efforts to accelerate cross-border transactions and international remittance, especially in countries that need the service the most.
The Blockchain World Wire makes use of Stellar Lumen’s protocol to achieve its point-to-point fund transfer. As a blockchain protocol, Stellar has eliminated the need for intermediaries, and this allows transactions to be completed within seconds of initiation.
The service has started to gain adoption, with six banks signing a letter of intent to issue stablecoins and make of XLM, Stellar’s native coin. At the moment, only three of the banks have been identified, and they are; Banco Bradesco in Brazil, RCBC in the Philippines, and South Korea’s Bank Busan.
According to Banco Bradesco’s Innovation and Digital Channels Executive Director, Luiz Carlos Brandao, the bank is always adopting new innovation that would boost customer experience and improve the efficiency of their services, and Blockchain World Wire checks both of those boxes. Manny T. Narcisco, a senior vice-president at RCBC, echoed the same sentiment, stating that the bank is developing a Peso stablecoin that would be launched once they gain approval from regulators.
Jesse Lund, the blockchain head at IBM revealed that they are starting with banks outside the US but are hoping to include US-based banks very soon.
Banks could use XLM
Asides the stablecoins the banks would develop, the agreement could see some of them use XLM, Stellar’s blockchain token. XLM can be used as the bridge currency when banks find it hard to trade one fiat currency for another. Jesse Lund, IBM’s blockchain head revealed that World Wire network could support other cryptocurrencies, but at the moment they are only focused on Stellar Lumen since banks are usually put off by the price volatility of most digital currencies.
Stellar Lumen has been making big moves on its own in the crypto space, and the partnership with IBM is a massive bonus for the cryptocurrency. Cryptocurrencies have been finding it hard to achieve massive adoption due to restrictions from banks. However, IBM has an excellent relationship with banks across the world, and this could be a means for Stellar and stablecoins to accelerate their adoption by banks and other financial institutions.
The thing that keeps me from buying $XLM might be the same reason why it didn't pump harder after the IBM news. There are way too many coins in circulation, and the team holds way too many of them.— Jonathan Habicht 🔥 (@HabichtJonathan) March 19, 2019
Stellar is a great long term hold but doesn't fit my strategy atm.#Crypto