Information Technology (IT) major IBM has created a Blockchain-based global payment network that transmits monetary value in the form of digital assets, commonly known as cryptocurrencies or "stable coins."
The payment network called World Wire uses the Stellar protocol that reduces intermediaries and allows users to accelerate settlement time. World Wire provides a more 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.
World Wire has already enabled payment locations in 72 countries, with 47 currencies and 44 banking endpoints, IBM said in a statement this week.
"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," Wieck said.
While local regulations will continue to guide activation, IBM said it is actively growing the network with additional financial institutions globally.
The network already supports settlement using Stellar Lumens and a US dollar stable coin through IBM's previously-announced collaboration with Stronghold, a financial services platform.
Pending regulatory approvals and other reviews, 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, adding Euro, Indonesian Rupiah, Philippine Peso, Korean Won and Brazilian Real stable coins to the network, IBM said.