IBM Could Create a Blockchain-based Stablecoin to Offer Cross-Border Payment Solutions
Jesse Lund, the head of blockchain solutions at IBM, said that stablecoins targeted at banks are an important development for IBM and its intention to power its cross-border solutions. Lund said that during an interview with Cheddar on March 15.
Could IBM Release A Stablecoin For Cross-Border Transactions?
A few weeks ago, JP Morgan Chase launched the so-called JPM Coin, which will be used by the bank’s clients to perform transactions reducing times and costs. Lund explained to Cheddar that the market demand is pushing IBM to develop its own stablecoin to start offering services to financial institutions.
According to Lund, there are many benefits for banks if they embrace stablecoins backed in their native fiat currency. During the interview, he was asked about how IBM’s solution performs compared to JP Morgan’s digital asset.
About this issue, Lund commented:
“It’s not a proprietary coin like JPMorgan’s solution, although I think what they’re doing makes a lot of sense for them. […] What JPM’s doing also adds tremendous validation to what we’re doing. But our view for stablecoins is really that they should be more broadly accessible and what World Wire seeks to do is to provide fungibility of digital assets across financial institutions.”
IBM has been working with Stellar (XLM) in order to deploy its services and power the “World Wire” network. The XLM digital currency will be used in IBM’s cross-border payment network called Blockchain World Wire (BWW).
Lund has also hinted in the past that IBM is interested in stablecoins as an important aspect of innovating in the cross-border payments industry.
There are other firms such as Ripple that are working in order to make it easier for firms, financial companies, and banks to make cross-border transactions in an easy and fast way.