On March 18, IBM announced that it has signed letters of intent with six global banks to issue their own stablecoins backed by their national fiat currencies on its global payment network, IBM Blockchain World Wire (BWW).
Jesse Lund, IBM head of blockchain solutions, revealed that the stablecoins will be backed by the euro and Indonesian rupiah.
Launched in last September, the BWW was built on the Stellar blockchain with 44 banks on service. The goal of BWW is to clear and enable real-time crypto payments between banks.
“We let the market drive the expansion and selection of the network incrementally. We are really feeling excited that we are on a roll to build something new and revolutionary that’s really going to change the landscape of cross-border payments.” Lund said, opened up the upcoming plans for expanding blockchain technology.
BWW is reported to enable payments in 47 currencies, in up to 72 different countries. The network divided bank systems by XLM token as an efficient, constant tracking settlement for fiat currencies between institutional parties.
However, IBM does not allow the banking participants to choose the settlement asset. “Our 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.” – Lund emphasized.
Also, IBM is partnering with Stronghold to create the first USD – backed stablecoins.