IBM has launched a new blockchain product called Blockchain World Wire, which is a cross-border payments system that has been in a beta phase for a long time now.
The platform uses Stellar's blockchain distributed ledger network to facilitate low-cost cross-asset transfers and transactions in real-time. IBM says the system will help to transfer digital assets between banks and will integrate payment instruction messages.
The project also includes World Wire APIs that will allow banks to support use of blockchain in facilitating cross-border and cross-bank transactions, In other words, the APIs allow a sender's bank to convert fiat money to digital assets or cryptocurrencies that can then be sent to recipient's bank. The recipient bank can also use the platform to convert the received cryptocurrency or digital asset into fiat money of the respective country. The recipient bank can then credit the amount to recipient's account.
If successful in implementation by banks, for instance, it could not only increase adoption of blockchain and digital assets globally, but could also improve speed of transactions to immediate settlements and improve information and data management since it allows for necessary record keeping, audit trail, and clearing. It will simplify the current cross-border payment and settlement processes that adds unnecessary costs and time when compared with blockchain-based processes.
IBM recently launched a stable coin called USD Anchor in partnership with Stronghold and Stellar blockchain. USD Anchor helps facilitate cross-border payments within regulation, without clients and customers worrying too much about volatility.
The platform will also be competing with Ripple's platforms such as xCurrent and xRapid that facilitate simultaneous clearance and settlement of cross-border payments in near real-time with liquidity. GMO Internet and Alibaba Inc. (BABA) affiliate Ant Financial are also working on a similar offering.
The company will demo the product at the Sibos Banking Conference in October this year.