IBM introduces new payments project built on Stellar protocol
Stellar and International Business Machine Corporation [IBM] are working closely for a breakthrough in the payments technology. Recent news reports state that the company has built a new project on the Stellar protocol named IBM Blockchain World Wire. IBM has been trying to join the world of the blockchain for over a year and has taken over more than 400 blockchain projects.
According to IBM official website,” Introducing IBM Blockchain World Wire, the new financial rail that can simultaneously clear and settle cross-border payments in near real-time. Integrating with your existing payment systems, you can replace costly opacity with affordable transparency – and that can bring greater financial opportunity to all.”
IBM Blockchain World Wire
The IBM Blockchain World Wire will allow cross-border transactions almost instantaneously and is aimed at financial institutions.” Two financial institutions transacting together agree to use a stable coin, central bank digital currency or other digital assets as the bridge asset between any two fiat currencies. The digital asset facilitates the trade and supplies important settlement instructions. The institutions use their existing payment systems – seamlessly connected to World Wire’s APIs – to convert the first fiat currency into the digital asset. World Wire then simultaneously converts the digital asset into the second fiat currency, completing the transaction. All transaction details are recorded onto an immutable blockchain for clearing,” read the official website.
The company will ensure that all the payment systems used by any institution will be compatible with IBM Blockchain World Wire. The new project guarantees the simultaneous clearing and settlement of all transactions by eliminating multiple parties while processing the transactions. It also boasts about an end to end transparency and a fixed exchange fee between all the currencies.
Both Stellar Lumens and IBM are part of a project called Hyperledger Fabric, which is building open source blockchain tools to support payment infrastructures. Earlier this year, Jesse Lund, the Head of IBM’s Blockchain department, had said, “IBM provides a major validating presence on the public Stellar network, adding enterprise/permissioned capabilities for asset issuers as well as transaction processing for our cross-border payments solution.”
Looking at Stellar Lumens [XLM] trading charts the prices have not been influenced by the news. XLM prices are resembling the overall crypto market trend. The prices are on a severe downtrend and are currently exhibiting a consolidation phase. The coin is showcasing a tight trading range and the MACD, currently exhibiting a bearish momentum is very close to breaking out from the bear zone.
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