Main navigation

Forbes: IBM Launches Stellar-Based Payment Network, Gets 6 Global Banks to Create Stablecoins on It

Tue, 03/19/2019 - 09:21
article image
Yuri Molchan
?️?IBM launches World Wire and persuades banks to use XLM and launch their own stablecoins on the network
Forbes: IBM Launches Stellar-Based Payment Network, Gets 6 Global Banks to Create Stablecoins on It
Cover image via U.Today
Read U.TODAY on
Google News
Contents

On Monday, six banks operating internationally signed the necessary documents confirming their desire to create their own stablecoins on a payment network run by IBM on the Stellar open ledger.

IBM launches payment network on Stellar, gets banks to join it

Forbes reports that on Monday, IBM launched a Stellar-powered network dubbed IBM Blockchain World Wire, which uses XLM as fuel for financial transactions.

The network was built to allow financial institutions to conduct transnational payments, whether it is remittance or simply foreign exchange, and do it in a quicker and cheaper manner than the conventional banking system allows.

Now, IBM is getting banks around the world to join it and start using its new product.

So far, the global heavyweight has named only three banks out of six that will cooperate and issue their stablecoins. These are RCBC bank located in the Philippines, Banco Bradesco from Brazil, and South Korea’s Busan Bank.

card

One IBM-based stablecoin already launched

The aforementioned banks are waiting for regulators to greenlight them. However, there is one stablecoin powered by World Wire which has been released already – a USD-pegged coin made by a San Francisco startup.

The newly made stablecoin is only waiting to start working, even within the US. However, this has been approved by US regulators. So, IBM promises that by the end of 2019, the US will be added as an operating point.

Related
Could Bitcoin Come Crashing Down? — The Mystery of Satoshi’s Kill Switch

World Wire, banks and XLM

Currently, the World Wire network runs in 72 countries through special locations for conducting fiat payments. However, the banks that will work with the new network will be able to transfer value in XLM, the native Stellar token, when difficulties rise in using fiat currencies. On top of that, they will be able to launch their own stablecoins.

In an interview, IBM’s head of blockchain for financial services, Jesse Lund, said that in the future, World Wire may start supporting other crypto assets as well.

article image
About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.