IBM Stocks Jumps to its Highest Yearly Level as World Wire Enables Payment Locations in 72 countries with 47 Currencies
IBM Blockchain has announced another step towards taking its banking clients closer to cryptocurrencies in association with Stellar and Stronghold.
IBM Blockchain World Wire uses Stellar protocol to make it easier for financial institutions to clear and settle cross-border payments in a matter of seconds. For this, six international banks, out of which three are identified viz. Brazil’s Banco Bradesco, Philippines-based RCBC, and Bank Busan of South Korea have signed letters of intent to issue tokens or stablecoins backed by fiat currency on World Wire.
Apart from issuing tokens, the network also provides the choice to use Lumens, the native token of Stellar blockchain to be used as the bridge currency.
The network went live on Monday while banks are still awaiting the approval from regulations. The official announcement on Twitter states that IBM Blockchain World Wire has enabled payment locations in 72 countries with 47 currencies, and 44 banking endpoints along with a video that reads,
“IBM Blockchain World Wire is officially available in a growing number of markets.
It reduces intermediaries and allows users to accelerate settlement times often in seconds by transmitting monetary value in the form of digital assets, commonly known as cryptocurrencies or stablecoins. The network already supports settlements using Stellar Lumens (XLM) and a USD dollar stablecoin through Stronghold.”
We're very proud to announce our partnership with #IBM #Blockchain World Wire, a real-time global payments network that optimizes/accelerates #forex, cross-border payments and remittances.https://t.co/5C0VTLYxD6
— Stronghold (@strongholdxchg) March 18, 2019
Stellar (XLM) & IBM Stocks Ride the Wave
However, there are no endpoints operating in the US yet about which IBM’s head of blockchain for financial services, Jesse Lund said they have received “a favourable verbal response from the US regulators.”
“So we are starting with markets that are outside of the U.S., but it won’t be long before we add U.S. as an operating endpoint. It will be sometime this year; we will get to it, third quarter, fourth quarter something like that,” said Lund.
Though the platform will be using Stellar Lumens, Lund said financial institutions are put off by the volatility of cryptocurrencies and so they are working “very hard” on expanding the ecosystem of stablecoins that involves, “many more banks and many more fiat currencies – so digital representations of fiat currencies – and even, eventually, central bank issued digital currencies.”
However, Lund calls IBM the “network operator” while Stellar is of the protocol level. He also pointed out that IBM is the single most trusted validator on the public Stellar network today,” which means, “in the consensus model, we are kind of a big anchor there.”
This news has an unsurprising effect on both Stellar and IBM stocks price. At the time of writing, Stellar has been trading at $0.115 with 24-hours gains of 5.32 percent, as per the data provided by Coinmarketcap.
IBM stock is back to its highest level this year…
Not sure it that's related but probably should be. pic.twitter.com/xVFOnhDiQC
— Mati Greenspan (@MatiGreenspan) March 18, 2019