IBM Launches Blockchain Payment System to Support Stellar’s XLM and Stablecoins

IBM announced yesterday that it has launched World Wire, a global real-time blockchain payment system that allows users to select a variety of digital assets when they settle.

World Wire is the first blockchain network to combine payment, clearing, and settlement to increase the efficiency of foreign exchange, cross-border payments, and remittances. The system uses the Stellar to replace the traditional banking complex system, reducing costs and, reducing intermediaries for financial institutions. The user can directly transfer the digital assets such as cryptocurrencies and stablecoins directly to the point-to-point transfer, and the settlement is completed in an instant.

The system supports the Stellar’s XLM and the US dollar-backed stablecoin, Stronghold, for settlement purposes. It is currently awaiting approval from the regulatory authorities. Six international banks, including Bradesco Bank of Brazil, Busan Bank, and China Commercial Bank of the Philippines, have signed a letter of intent to issue their own stablecoin and apply it on World Wire, including Euro, Indonesian rupiah, Philippine peso, and Brazilian Real. The service currently covers 72 countries, 47 currencies and 44 banks worldwide. IBM is communicating with local financial institutions to expand the network.

Marie Wieck, general manager of the IBM blockchain, said the new payment network is designed to accelerate remittances and cross-border payments, and to facilitate the flow of capital for countries. Wieck said, “By building a network that allows financial institutions to support multiple digital assets, we expect to stimulate innovation and improve popularization of finance.”