According to the reports, six international banks have signed letters of intent to issue stablecoins backed by fiat currencies on IBM’s now-live Blockchain-powered payments network, World Wire. The IBM payment network utilizes the stellar public Blockchain, and promises to allow regulated institutions to move value across borders, remittances or foreign exchange more quickly and cheaply than the legacy correspondent banking system.
In September last year, IBM’s cross-border payment network, Blockchain World Wire (BWW) was launched in collaboration with Stellar (XLM). The network went live Monday and reportedly has over 44 banks on service, with the aims to leverage Cryptocurrencies to allow near real-time international settlements between banks. Within this development, IBM reported that three of the banks have been identified so far, Philippines-based RCBC, Brazil’s Banco Bradesco, and Bank Busan of South Korea, while the rest, which is soon to be named, will provide digital versions of Euros and Indonesian rupiah, pending regulatory approvals and other reviews. As part of the development of bank-issued stablecoin announcement, IBM had also joined with Stronghold, a Stellar-based, USD-backed asset, to build the Stellar network’s first stablecoin.
IBM’s head of Blockchain for financial services, of the project’s status, Jesse Lund said that indeed, while Stronghold’s USD-backed coin currently serves as an on-ramp for greenbacks, there are as yet no pay-in/pay-out locations in the U.S. In this regard, IBM has received a favorable verbal response from U.S. regulators. He further noted that IBM plans to expand its Blockchain-powered settlement network with further assets. Currently, BWW supports over 47 currencies for payments across 72 countries. It disintermediates legacy bank settlement systems by introducing the XLM token as an efficient, immutably-tracked settlement instrument for fiat currencies between institutional parties, according to reports.