IBM, the computing giant who was in recent news for filing high number of blockchain patents as per recent reports, has again attracted news. This time it’s their launch of a blockchain based financial solution aimed at upending the current misbalance in global payment and remittance services.
The newly launched service, namely, ‘IBM Blockchain World Wire‘ leverages the stellar blockchain with digital assets to provide instant money transfers of a predefined value possible.
In earlier news, cryptocoinspace had noted that IBM was backing a dollar-pegged stablecoin issued by stronghold on the stellar blockchain. In the same month, IBM also announced about its plans of an environmental project also based on stellar blockchain.
This new stellar based platform is officially described as:
“financial rail that can simultaneously clear and settle cross-border payments in near real-time.”
As per the IT giant, World Wire would integrate quite easily with any existing payment system and it supports payments of any size, to any destination, for any asset type within a highly secured environment.
As per an excerpt from IBM’s offical statement:
“With IBM Blockchain World Wire, clearing and settlement with finality happens in near real-time. The solution uses digital assets to settle transactions — serving as an agreed-upon store of value exchanged between parties — as well as integrating payment instruction messages. It all means funds can now be transferred at a fraction of the cost and time of traditional correspondent banking.”
How does World Wire Work?
As per the World Wire framework, the transacting parties can chose a digital asset of their choice, it could be a central bank digital currency, crypto or stablecoin and would act as a bridge between the other two fiat currencies involved. The digital asset facilitates the trade and supplies important settlement instructions for the transaction to be confirmed.
Through the World Wire API, financial institutions can leverage this payment system for seamlessly converting their Fiat currencies to any desired digital asset. Simultaneously, the platform itself would convert the chosen digital asset to the second chosen fiat currency completing the initiated transaction.
All these transactions are recorded on the stellar blockchain for security purposes and also for the regulatory compliance since all records are permanent in nature due to irrefutable nature of blockchain.
This news certainly is a good news for stellar blockchain as they make their way up towards 1,000,000 accounts.