IBM Partners with Stellar to Revolutionize Cross-Border Payments
Stellar can now add another feather in its cap in the form of its collaboration with IBM. The former will be assisting the technology company with an exciting and transformative new project – the IBM Blockchain World Wire.
Stellar is quietly making strides in the industry. Earlier this year saw it announce that it would be launching its own Lightning Network in a bid to assist to assist in easy and affordable cross-border payments. To help with this, the platform also received their Sharia compliance certificate, which is essential for companies hoping to be a part of the Islamic finance ecosystem.
Stellar Taking Off
Now, according to SludgeFeed, Stellar has partnered with tech giant, IBM, for the latter’s Blockchain World Wire initiative, which will be compatible with established payment systems to facilitate a range of transactions. A statement from IBM says:
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.
Not only is this a major milestone for Stellar, but it also showcases once again just how much of an impact and difference that blockchain technology as a whole can make in the financial industry. Exchanging funds across borders in this way cuts out the need for multiple people to make just one transaction possible.
In addition, because all transactions will be recorded on the Stellar blockchain, those involved will enjoy the highest level of transparency.
Transparency and Efficiency
Because the Blockchain World Wire is compatible with existing institutions, the latter will be able to use their own payment systems to convert fiat to digital assets. These assets can be traded on the blockchain’s API and then converted into the receiving fiat currency.
This compatibility means that these financial institutions can choose their own initial currency to use, be it crypto or a banking-specific digital currency. The conversion to a digital asset is used as a way to supply settlement instructions to aid in the successful completion of the trade.
This could be a real game-changer for IBM, and Stellar seems to be the perfect partner to help them on their journey. The platform recently collaborated with Tempo to provide a distributed ledger technology (DLT) solution for the French company’s remittance services.
Stellar is currently ranked sixth on CoinMarketCap with a market cap of just over $3.7 billion.
Do you think that more financial institutions will soon be using DLT for cross-border payments? Let us know in the comments below!
Images courtesy of Stellar.org, Pixabay, and Pexels
Tags: global payment system, Lightning Network, Sharia Compliant, stellar, stellar ibmRead original article
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