IBM is using its blockchain-based payment system that has been in use for some time, with the launch of a new product called Blockchain World Wire.
Addressed to the institutions and exploiting the stellar blockchain network, Big Blue says that its new financial railway "can simultaneously liquidate and settle cross-border payments almost in real time."
Similar to other blockchain-based payment networks such as Ripple, World Wire attempts to eliminate bank intermediaries that add complexity and cost to traditional international payment systems.
According to a document provided by IBM, the product works by replacing the bank intermediaries normally required for cross-border payments with digital resources sent over a distributed network.
The company says on its website:
"Two financial institutions that negotiate together agree to use stable currencies, digital money from the central bank or other digital assets as a bridge asset between two fiat currencies and provide important instructions regulation. "
Actually, using the World Wire APIs inserted in the existing systems of the banks, the fiat currency is exchanged in a digital asset at bank A. It is then transmitted to bank B, where it is converted into a second fiat currency . "All transaction details are recorded on an immutable blockchain for clearing," says IBM.
As reported by CoinDesk, IBM had revealed in July that it was working with a startup called Stronghold on the launch of a low volatility stablecoin that will run on the stellar blockchain and use its consent mechanism to verify transactions.
"What we really want is to allow all types of digital transactional networks to regulate their fiat digital currency transactions on the same blockchain networks," said Jesse Lund, IBM
IBM plans to demonstrate the product at the Sibos banking conference in October, according to a report.
With the switch to blockchain payments, IBM will compete with the startup industry Ripple, which already offers several similar institutions-oriented products, such as xCurrent and xRapid, which have found increasing use globally.
A number of important institutions are also working for their similar products, with GMO, a subsidiary of Alibaba Ant Financial and others announcing new moves in space.
IBM has been working with the stellar project since last October, indicating in March that it is interested in the expansion
Lund told CoinDesk at that time:
"What is happening is that this emergence of a new segment could actually be one of the largest segments, that is a type of authorized but public blockchain network. "
IBM image via Shutterstock