IBM’s Blockchain Chief Hints At Stablecoin To Boost Cross-Border Payments For Banks
IBM could soon create a stablecoin as one of its major developments as it looks for a blockchain-based solution that would boost the cross border payments ecosystem.
The solution would be targeted and banks and other financial institutions.
The hint to this effect comes from the company’s blockchain solutions chief Jesse Lund, who made the remarks during a March 15 interview with financial news site Cheddar.
A lot more about the project will definitely come out following a detailed announcement expected anytime next week.
Speaking to Cheddar, Lund said that at the moment increased “market demand” had driven IBM to consider having a stablecoin solution specifically tailored to the needs of global financial institutions.
According to him, a growing number of banks across the world believe there is a lot to benefit from, business-wise, in relation to stablecoins issued in the banks’ native fiat currency.
Comparing the mooted IBM solution to the USD-backed JPMorgan stablecoin “JPM Coin,” Lund said that what IBM proposes would be a little different.
Lund hinted at a solution whose features would lie “somewhere in between,” ostensibly referring to something not too similar to the exclusive and closed network crypto asset JP Morgan is working on at the moment.
He stated the stablecoin would not be “a proprietary coin like JPMorgan’s solution,” which obviously “makes a lot of sense” to what the major U.S. bank wants to achieve.
He also thinks that JPM’s effort is a validation to what IBM was doing (with regard to payment solutions for banks).
However, he noted that:
“[IBM’s] view for stablecoins is really that they should be more broadly accessible and what World Wire seeks to do is to provide fungibility of digital assets across financial institutions.”
The “World Wire” reference is taken from the collaboration between IBM and Stellar (XLM), where the tech giant leverages the Stellar protocol and its native token XLM in IBM’s Blockchain World Wire (BWW) project.
The BWW is a financial rail by IBM that aims to provide a near real-time, simultaneous clearance and settlement of cross-border payments between banks.
In an interview in February, Jesse Lund explained that having several settlement instruments would not only benefit cross-border money transfer but also give users the option of choosing among various digital assets and thus “negotiate” these choices in real-time.
IBM partnered Stellar-based Stronghold to create the first USD-backed stablecoin on the Stellar network, and the push to have an ecosystem where multiple digital assets are used as settlement instruments can only help grow the international money transfer landscape.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.