Banks Rush to Issue Stablecoins With the Help of IBM and Stellar!

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On Monday, March 18, 2019, six international banks signed up for the new Stellar – IBM’s blockchain-powered payments network “World Wire” to issue their own stablecoins. At the moment, World Wire has over 44 banks on their service. Their primary aim is to enable near real-time international settlements between banks.

Blockchain World Wire

It is a distributed ledger technology payment system which just went live. It will provide an infrastructure for clearing and settling cross-border payments in almost real-time. Also, at the same, time will reduce transaction costs. This will be done by removing third-party intermediaries from the process. IBM claim that they are handling around 60% of the world’s transactional systems. This provides World Wire with a advantageous head start. Moreover, BWW currently supports more than 47 currencies across 72 countries.

Six Banks Already Applied

It looks like JPM Coin started a new trend – banks issuing their own coins. At the moment, thanks to Stellar and IBM, Banks can easily apply to their own stablecoins that would be pegged to their native currencies. So far Brazil’s Banco Bradesco, South Korea’s Bank Busan, Philippines’ Rizal Commercial Banking Corporation and three other banks have filed an application.

“We let the market drive the expansion and selection of the network incrementally. We are really feeling excited that we are on a roll to build something new and revolutionary that’s really going to change the landscape of cross-border payments,”

says Jesse Lund, the head of blockchain solutions at IBM.

Stellar to Issue its Own Stablecoin

Also, IBM partners with Stronghold, a Stellar-based, USD backed asset. They are also in the talks of developing their own Stellar network’s first stablecoin. It would disintermediate legacy bank settlement systems by introducing the XLM token as an efficient, immutably-tracked settlement instrument for fiat currencies between institutional parties.

“Our view for stablecoins is really that they should be more broadly accessible and what World Wire seeks to do is to provide fungibility of digital assets across financial institutions,” says Lund. 

Source:

https://cointelegraph.com/news/six-global-banks-sign-up-to-issue-stablecoins-on-ibms-now-live-blockchain-network
https://cointelegraph.com/news/fast-seamless-the-race-for-the-cross-border-payments-market

Photo by Floriane Vita on Unsplash