Six Banks To Issue Stablecoins On Blockchain From IBM
Six international banks have reported an intention to develop their own stable tokens pegged to fiat currencies with the help of the IBM blockchain platform which is based on the Stellar technology, Cheddar reports.
IBM and the Stellar crypto platform made a joint statement at the Money 2020 Asia conference in Singapore. They emphasized that currently, over 44 banks worldwide use IBM’s World Wire blockchain platform for making payments, and six of them plan to launch their stablecoins.
Three banks out of six have been named so far — Brazilian Banco Bradesco, South Korean Bank Busan, and Rizal Commercial Banking from the Philippines. What is known about the rest is that their stablecoins will be pegged to the euro and the Indonesian rupee.
Jesse Lund, IBM Blockchain VP, stressed that banks are eager to take advantage of new opportunities, and the network is gradually expanding. Financial organizations are on the verge of creating revolutionary technologies that will change the system of international payments.
The World Wire blockchain platform was developed in 2018 to eliminate intermediaries that complicate transactions and make them more expensive. For settlements, the Stellar XLM token is used, and payments are faster, cheaper, and safer.
World Wire supports over 47 currencies in 72 countries so far. IBM plans to expand the network further so that customers can make money transfers from anywhere in the world in a few years.
As previously reported, IBM plans to release its own stablecoin for the banking sector.