SWIFT and Ripple are seeing some new competition in the financial global payments market as IBM Blockchain World Wire launches.

While traditional financial institutions scoffed at cryptocurrencies, they did take notice of its nearly instantaneous cross-border payment ability. The current SWIFT payments system is slow, which led to Ripple creating its own network using XRP as a means of quickly making payments throughout the world. Now a new competitor has entered the market with the launch of IBM Blockchain World Wire.

IBM Entering the Fray

When a corporation like IBM enters a chosen field, it’s taken very seriously. The industrial behemoth is going all-in on creating a network for global payments for financial institutions. The IBM Blockchain World Wire is designed for fast and easy cross-border payments, foreign exchange, and remittances.

The platform integrates payment messaging, clearing, and settlement on a single, unified network. It also allows users to choose from a variety of cryptocurrencies, such as Stellar (XLM) or other stablecoins.

Marie Wieck, General Manager of IBM Blockchain, says:

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. By creating a network where financial institutions support multiple digital assets, we expect to spur innovation and improve financial inclusion worldwide.

Starting Off with a Bang

The IBM Blockchain World Wire is definitely starting off strong. At launch, the platform allows payments in 72 countries featuring 44 banking endpoints and 47 different currencies. This number is expected to grow as IBM is working with regulators in numerous countries to bring the platform online in their jurisdiction.

As stated above, the platform uses the Stellar cryptocurrency, as well as a stablecoin linked to the U.S. dollar that is the result of IBM collaborating with Stronghold. The list of stablecoins used by the platform will grow pretty quickly as six banks have already announced the upcoming creation of their own stablecoin on the IBM blockchain. More banks will eventually create their own stablecoin depending upon client demand.

Overall, this is tremendous news. Competition is healthy, and getting traditional financial institutions on the cryptocurrency train is a good thing in the long haul. Ripple was taking it to SWIFT, but it now appears that they’re both facing some stiff new competition.

What do you think about IBM launching its own payments blockchain? Let us know in the comments below.

Images courtesy of Wikimedia Commons/Vinoo202 and Pixabay.