The head of IBM blockchain Department, Jesse Lund, said that the next direction in the development of company’s blockchain solutions for cross-border payments will be stablecoins. Lund told about it in an interview for the financial channel Cheddar on March 15.
Lund said that the details of the project will be officially announced next week. According to him, the high market demand prompted the company to develop such a solution:
“A lot of banks around the world […] see a huge commercial benefit in the issue of stablecoins on the basis of their national currency.”
In response to the question about what is the difference between IBM solution and the upcoming launch of stablecoin JPM Coin, Lund said:
“Unlike JPMorgan’s solution, it’s not a proprietary coin, though I think it makes a lot of sense for them. [ … ] What JPM does also provides a strong rationale for what we do. But we believe that stablecoins should be more affordable. The IBM World Wire solution is designed to make digital assets interchangeable in financial institutions.”
Recall, World Wire is a payment solution developed by IBM together with Stellar (XLM) last fall. The solution was integrated into the IBM Blockchain World Wire (BWW) blockchain network and it is used for instant international payments between banks and other financial institutions.
In addition, last year, IBM entered into a partnership agreement with Stronghold, an issuing company based on stellar, about assets using within the commercial networks of IBM Blockchain Network.
Recently, in an interview, Lund said that in addition to Stellar (XLM), IBM is considering the possibility of working with other digital assets, including stablecoins issued by banks:
“It could be Ripple, Bitcoin… as well as other tools like stablecoins, and hopefully soon, even cryptocurrencies issued by the Central Bank.”