Antonio Zugaldia / Flickr
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Multinational technology company IBM has launched a blockchain-based financial solution to upend the existing status quo regarding remittances and global payments.

This proposed solution, called IBM Blockchain World Wire, is set to adopt the Stellar (XLM) blockchain alongside other digital assets to allow instant money transfers of a guaranteed amount. Stellar describes itself as a “financial rail that can simultaneously clear and settle cross-border payments in near real-time.”

Blockchain World Wire is set to integrate with existing payment systems and support transactions of any size, destination, and asset type within a high-security process. In describing the possible utility, IBM has emphasized the cost-savings of the World Wire.

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.

Financial institutions may utilize the digital asset of their choice, which may range from a cryptocurrency to a banking-specific digital currency. The digital assets stand to facilitate each trade by supplying settlement instructions in order for the transaction to be confirmed.

The platform is set to eliminate the need for multiple parties to participate in a single transaction as a means to reduce the capital requirements for cross-border transactions. End-to-end transparency will be enhanced due to one exchange fee occurring between all currencies as to reduce the existing cost and time present when connecting with new revenue flows or markets.

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Established institutions may utilize their existing payment systems to convert fiat currencies to digital assets that may be traded upon connecting to the Blockchain World Wire API. The digital assets are then converted into a second fiat currency, which often completes the transaction outright. Each transaction is permanently recorded on the Stellar blockchain, which recently surpassed the milestone of one million accounts, for clearing and security purposes.

XLM is currently ranked 6th in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.

More: IBM Blockchain World Wire
Similar: Stellar (XLM) Hits 1 Million Accounts on Its Blockchain
Photo: Antonio Zugaldia / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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