One of the biggest computing giants in the space, IBM, has recently announced a blockchain payments platform that would run through Stellar (XLM) and its infrastructure. Known as one of the companies that are dominating the field of blockchain patents, IBM said that this solution has the potential to upend the existing status quo in today’s global payments and remittances.
Named ‘IBM Blockchain World Wire‘, the new solution combines the very best of Stellar’s blockchain with digital assets, making instant money transfers of guaranteed values possible. After backing a dollar-pegged stablecoin issued by Stronghold on the Stellar network in July this year, IBM announced that it was involved in an environmentally-friendly crypto project that was also built on Stellar.
Now, the project is live in the form of a payments platform which describes itself as a “financial rail that can clear and settle cross-border payments in near real-time.” As IBM announced, the World Wire integrates readily with any existing payment system and supports payments of any size, to any destination and in any asset type.
According to the official information from IBM, the patent is described as following:
“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.”
Basically, this payment platform can be used by any financial institution. The first step is to choose a digital asset of their choice, connect to the World Wire API and seamlessly convert their fiat currencies into digital assets. All of the transactions will be recorded on the Stellar blockchain.
As IBM also noted, the benefits of this new solution are mainly focused on faster payment processing, simultaneous clearing and settlement as well as reduced time for resolution and reconciliation – not to mention the lower clearing costs.
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