IBM known to be one of the biggest computing giants has introduced a blockchain based financial solution. It will be called IBM Blockchain World Wire and will help in worldwide remittances.

IBM known to be one of the biggest computing giants has introduced a blockchain based financial solution. It will be called IBM Blockchain World Wire and will help in worldwide remittances.

It will be Stellar based and described as a

‘financial rail that can simultaneously clear and settle cross-border payments in near real-time.’

World Wire will cater to support payments of any size, to any destination and of any asset type. IBM even clarified the details.

“With IBM Blockchain World Wire, clearing and settlement with finality happens in near real-time. The solution uses digital assets to settle transactions — serving as an agreed-upon store of value exchanged between parties — as well as integrating payment instruction messages. It all means funds can now be transferred at a fraction of the cost and time of traditional correspondent banking.”

World Wire will allow institutions under it to use digital assets from cryptocurrencies to stable coins, and support the facilitation and transactions. When the institution is connected to the World Wire API they use existing payment systems to seamlessly convert fiat currencies into the digital asset to be traded. After this, the digital asset is converted to fiat for the receiver. The transaction is done instantaneously.

The blockchain that will be used is the Stellar network, with a permanent record so that regulatory compliances are met. The solution by IBM will be speeding up payments, while simultaneously solving the clearing and settlement. There will also be a reduced time to dispute resolutions with a far lower clearing cost.

IBM is a strong supporter of Stellar with a previous running of a stable coin pegged to the US Dollar called Stronghold. Stronghold will be in the new Blockchain World-Wire. Stronghold will be one of the stable coins that will help bridge the asset between two fiat currencies. The two financial institutions will agree on the stable coin before the facilitation of trade on IBM’s World Wire with the help of APIs.

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