Six international banks, including Banco Bradesco, Bank Busan, and Rizal Commercial Banking Corporation (RCBC), have signed letters of intent to issue their own stable coins on IBM Blockchain World Wire, a new global payment network.
Image: IBM launches World Wire. Photo: Courtesy of Petre Barlea/Pixabay.
IBM Blockchain World Wire, a real-time global payments network for regulated financial institutions, is officially accessible in several markets.
Pending regulatory approvals and other reviews, the six international banks plan to issue their own stable coins on World Wire, adding Euro, Indonesian Rupiah, Philippine Peso, Korean Won and Brazilian Real stable coins to the network.
The technology-giant said that it will continue to expand the ecosystem of settlement assets based on client demand.
IBM said World Wire has been designed to optimize and accelerate foreign exchange, cross border payments and remittances and is the first to integrate payment messaging, clearing and settlement onto a single unified network, while allowing participants to choose from a variety of digital assets for settlement.
IBM Blockchain general manager Marie Wieck said: “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.
“By creating a network where financial institutions support multiple digital assets, we expect to spur innovation and improve financial inclusion worldwide.”
World Wire will offer a straight-through model for cross border payments using the Stellar protocol that makes money transfers point-to-point in lieu of the complexities of conventional correspondent banking.
It claims to reduce intermediaries and allows users to speed up settlement time often in seconds by transmitting monetary value in the form of digital assets, commonly known as cryptocurrencies or ‘stable coins.’
This approach is touted to improve operational efficiency and liquidity management, streamlines payment reconciliation and reduces overall transaction costs for financial institutions.
The network already supports settlement using Stellar Lumens and a U.S. dollar stable coin through the company’s previously-announced collaboration with Stronghold.
Banco Bradesco innovation and digital channels executive director Luiz Carlos Brandao Cavalcanti Junior said: “Bradesco continuously adopts innovation that enhances customer experience and improves efficiency. The World Wire Network addresses both of these aspects, and therefore presents a valuable opportunity for Bradesco and its customers in Brazil.”