IBM’s global blockchain payment network goes live

The blockchain-based network will settle cross-border payments using Stellar Lumens (XLM) and the US dollar stable coin

IBM has announced that its global payments network IBM Blockchain World Wire is now in limited production.

The announcement was made at financial services and FinTech conference Money20/20 Asia.

IBM Blockchain World Wire is a real-time global payments network that clears and settles foreign exchange, cross border payments and remittances.

Big Blue says it is the first blockchain network to integrate payment messaging, clearing and settlement on a single network and that it will add trust, simplicity and efficiency to the payments industry.

“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.”

Strong and stable

World Wire uses the open-source, decentralised Stellar protocol to transfer monetary value as digital currency.

The network currently supports settlement using Stellar Lumens and the US dollar stable coin through IBM’s partnership with Stronghold.

Stable coins are a subset of cryptocurrency that have a value rigidly tied to a national currency.

IBM claims World Wire has enabled payment locations in 72 countries, using 47 currencies and 44 banking endpoints and that it is ‘actively growing the network with additional financial institutions globally’.

Pending regulatory approvals, 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 World Wire.

If approved this would add Euro, Indonesian Rupiah, Philippine Peso, Korean Won and Brazilian Real stable coins to the network.

World Wire is IBM’s third global blockchain network, alongside shipping solution TradeLens and food supply chain provenance network Food Trust.

Last week IBM and the French National Council of Clerks (NCC) announced the development of a blockchain-based commercial court network for legal transactions.