Six international financial institutions have signed letters of intent for the issuance of stablecoins, on World Wire, which is an IBM payment network that uses the Stellar blockchain. This deal will promise that regulated banking institutions will provide value for transactions that happen border-to-border. It will also allow transactions to occur faster and cheaper, than the current correspondent financial banking structure. As of now, three banks have been named: Brazil’s Banco Bradesco, Phillipines Bank RCBC, and South Korean Bank Busan. The remaining three will soon be identified. However, we do know that they will be offering digital forms of Euros and the Indonesian currency Rupiah. The network has already gone live, and so far there is one stablecoin that is on World Wire at the moment and that is the U.S. dollar backed token that was formed by Strongholed, a startup company out of San Francisco. So far, there has been favorable responses from U.S. regulators, which is always a good sign. The World Wide network already has locations in 72 nations and has 46 currencies under its belt.
Besides allowing customers to use the stablecoins, in the future there is a possibility clients of these banks can use lumens, which is another token using the Stellar blockchain. The lumens can be implemented as a “bridge currency”, which makes it easier to trade one fiat currency to another fiat currency. World Wire will be the first big bang to hit IBM, this year. Stellar was created by former Ripple co-founder, Jed McCaleb. What does this association have to do with IBM? IBM will be working as a network operator, with Stellar being at the protocol level. This will include tasks such as IBM keeping maintenance of the payment API and software that will handle client accounts and their money flow. This new innovation will also assist IBM in making its mark with most banks worldwide.