IBM has announced the introduction of Blockchain World Wire, a product that is expected to compete with Ripple’s xRapid, a cross-border payment solution.
Blockchain World Wire designed for cross-border payment
The tech giant is of the view that the Blockchain World Wire has what it takes to become the new financial rail that can simultaneously clear and settle cross-border payments in near real-time.
Since the inception of Ripple and its x-Rapid solution, it has been the biggest name in the game when it comes to cross-border payment for banks. Ripple has recorded success with its other products xCurrent and xVia but xRapid has so far failed to live up to its expectations.
Stellar, with the help of IBM, has now surfaced to challenge Ripple as a cross-border payment solution. The cross-border payments realized via Blockchain World Wire are based on Stellar protocol.
When comparing the platform with traditional payment solutions, IBM claims Blockchain World Wire processes payment faster, has low transaction costs, increased efficiency, and also supports payments of any size, in any asset type, to any destination
How it works
IBM also released a diagram which explains how the Blockchain World Wire works. First, two financial institutions transacting together agree to use a stable coin, central bank digital currency or another digital asset as the bridge asset between any two fiat currencies.
The institutions will then use their existing payment systems to convert their fiat currencies to digital assets. The payment systems to be used would be seamlessly connected to Blockchain World Wire’s API.
Finally, World Wire would simultaneously convert the digital asset into the second fiat currency, completing the transaction.
IBM platform a big boost for Stellar Lumen (XLM)
The fact that IBM has decided to make use of Stellar’s protocols for the development of the Blockchain World Wire is a big boost for the cryptocurrency. IBM has recently announced that its network manages roughly 90 percent of the total credit card settlements.
With this kind of figures, cryptocurrency adoption would gain a massive boost and Stellar would benefit the most.
IBM is confident that with the help of Stellar protocols, Blockchain World Wire would enable financial institutions to settle the cross-border transactions within seconds.
Stellar Lumens tweeted this latest development a few days ago, which has definitely generated some excitements amongst its community. Even though IBM has not mentioned it, there are expectations that the XLM coin would be used on the platform.
Stellar Lumens officially supported by Exodus wallet
In an unrelated news, Stellar Lumen is now supported by Exodus wallet. In its announcement, Exodus told its users to update the existing exodus wallet in order to be able to access the newly supported XLM on the platform.