IBM Ramps Up Efforts on Bank-Issued Stablecoins
Following in the footsteps of JPMorgan, IBM is now beginning to flex its muscles in the crypto market.
U.S.-based tech titan IBM has reportedly turned to stablecoin, with six international banks signing letters of intent to issue stablecoins on World Wire, such as Philippines-headquartered Rizal Commercial Banking Corporation (RCBC), Brazil’s Banco Bradesco and BNK Financial Group Inc.’s Busan Bank.
IBM Blockchain World Wire, leveraging the Stellar protocol, serves as a network provider for international payments. Back in October 2017, the tech giant already announced an initial pilot of World Wire, yet the blockchain-powered payments network has made its global debut in recent days.
Hot on the heels of IBM’s new move, XLM has bucked the bearish trend with its price surging by more than 6% over a 24-hour period, according to data compiled by CoinMarketCap.
What Are the Advantages of World Wire?
According to IBM, the World Wire platform has already secured payment locations in 72 countries across the globe, along with 47 currencies and 44 banking endpoints (including banks and money transmitters).
As Crypto Briefing put it, IBM’s World Wire is poised to outshine traditional banking intermediaries in several ways:
- Accelerating payment speed: With simultaneous clearing and settlement, and the elimination of multiple middlemen and third parties processing transactions, World Wire intends to streamline and simply cross border settlements
- Slashing costs: With much lower clearing requirements, and reduced capital necessary for international payments. World Wire also plans to implement a single exchange rate fee between all currencies
- Increased transparency: XLM’s blockchain ledger is publicly available for research and audit, ensuring trust among regulators and law enforcement
- State of the art security solutions
- Support for transactions of any size
Growth Trajectory of IBM-Powered Stablecoin
According to an earlier report by Bloomberg, Jesse Lund, Vice President of blockchain and digital currencies at IBM, said that Busan Bank and RCBC are waiting for regulators’ nod at the moment, expecting to issue a stablecoin in the second quarter of 2019.
IBM has ramped up efforts to beef up the ecosystem of stablecoins, poised to cover more banks and more fiat currencies, and even central bank-issued digital currencies in the future, according to Mr Lund.
“At least two major U.S. banks are considering whether to follow JPMorgan Chase & Co.’s lead in issuing a coin.”
XLM Secures Great Gains
Stellar’s native token XLM is set to act as a bridge currency from one bank to another.
As IBM managed to bring on board six international banks, the price of XLM has surged by more than 6% over the past two days. In the long run, IBM’s recent move is expected to further increase the liquidity and value of XLM.
The World Wire platform only supports XLM for the moment at least, which may support other crypto assets in the days to come.