Multinational Technology Company IBM has formally introduced Blockchain World Wire (BBW) a blockchain product developed to run hand-in-hand with the Stellar blockchain.
In a post on its website, IBM described BBW as, “the new financial rail that can simultaneously clear and settle cross-border payments in near real-time.”
The product allows financial institutions to clear and settle cross-border payments in near real time. This it does by converting the fiat into digital currency and back to fiat.
“Two financial institutions transacting together agree to use a stable coin, central bank digital currency or other digital asset 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.”
IBM has partnered Stellar on a couple of projects in the recent past. In July, the tech giant launched a stablecoin on the stellar blockchain network. The token which is backed by an FDIC-insured bank involved inputs from Ripple and blockchain startup Stronghold.
In May IBM looked to Stellar blockchain to launch Verde tokens for carbon-credit startup Veridium Labs Ltd.
Benefits of BBW as listed by IBM include faster payment processing, reduced cost, and improved efficiency among others. It is set to compete with the xRapid and xCurrent products provided by Ripple Inc.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.