International Business Machines Corporation (NYSE: IBM) announced on Monday its new IBM Blockchain World Wide, a real-time global payments network for regulated financial institutions. The new payments system is now available within a growing number of markets.
IBM said the new system is designed to optimize and accelerate foreign currency exchange, cross border payments, and remittances. World Wire is the first blockchain network to integrate payment messaging, clearing and settlement on a single network, while also allowing customers to choose from a variety of digital assets.
World Wire is using Stellar protocol that helps make money transfers point-to-point in lieu of the complexities of conventional correspondent banking. Stellar’s technology reduces intermediaries and allows users to accelerate settlement time often in seconds by transmitting money in form of digital assets, or more commonly known as cryptocurrencies.
“We’ve created a new type of payment network designed to accelerate remittances and transform cross-border payments to facilitate the movement of money in countries that need it most,” said Marie Wieck, General Manager, IBM Blockchain. “By creating a network where financial institutions support multiple digital assets, we expect to spur innovation and improve financial inclusion worldwide.”
World Wire already supports settlement using Stellar Lumens and a U.S. dollar stable coin through IBM’s collaboration with Stronghold.
Pending regulatory approvals and other reviews, six international banks, including Banco Bradesco, Bank Busan, and Rizal Commercial Banking Corporation have signed letters of intent to issue their own stable coin on World Wire. The institutions also intend to add Euro, Indonesian Rupiah, Philippine Peso, Korean Won and Brazilian Real stable coins to the network.
“Bradesco continuously adopts innovation that enhances customer experience and improves efficiency,” said Luiz Carlos Brandao Cavalcanti Junior, Innovation and Digital Channels Executive Director, Banco Bradesco. “The World Wire Network addresses both of these aspects, and therefore presents a valuable opportunity for Bradesco and its customers in Brazil.”
“RCBC is pleased to be an early innovator with plans to issue our own Peso stable coin on World Wire, pending final approval from our regulators,” said Manny T. Narcisco, First Senior Vice-President, RCBC. “We’re focused on innovation that adds value for our customers, and World Wire presents a tremendous opportunity to transform and enhance our payment infrastructure.”
World Wire is enabled in 72 different countries across the world, with 47 currencies and 44 banking endpoints. IBM said it will continue to expand upon the network depending on customer demands.