IBM announced this week that they would be launching their blockchain based payment solution the ‘IBM Blockchain World Wire’ . Big Blue has been quietly working behind the scenes to develop real world solutions using blockchain technology.

By leveraging the blockchain’s ability to simultaneously clear and settle funds along with reduced fees, the World Wire service aims to improve efficiency for financial institutions.

In the example provided by IBM, two financial institutions first agree to make a transaction between fiat currencies, also agreeing upon the intermediary digital currency which will be used to facilitate the transaction. The World Wire service integrates with the financial institutions existing payment solutions and performs the first step of converting the senders fiat currency to a digital asset. World Wire then completes the trade and the conversion back to the second fiat currency in a single transaction, which is in turn recorded on the immutable record of the Stellar Lumens networks blockchain.

IBM will demo the product to industry heavyweights at the Sibos banking conference in October.