IBM’s Stellar-powered global remittance platform now has six banks on board. Today, the tech giant announced World Wire will power payments and foreign exchange services across 72 countries.“World Wire provides a more straight-through model for cross border payments using the Stellar protocol that makes money transfers point-to-point in lieu of the complexities of conventional correspondent banking. It reduces intermediaries and allows users to accelerate settlement time often in seconds by transmitting monetary value in the form of digital assets, commonly known as cryptocurrencies or ‘stablecoins.’ This simplified approach improves operational efficiency and liquidity management, streamlining payment reconciliation and reducing overall transaction costs for financial institutions.”
Announced Monday, six international banks have signed letters of intent to issue stablecoins, or tokens backed by fiat currency, on World Wire, an IBM payment network that uses the Stellar public blockchain. The network promises to let regulated institutions move value across borders — remittances or foreign exchange — more quickly and cheaply than the legacy correspondent banking system. So far three of the banks have been identified — Philippines-based RCBC, Brazil’s Banco Bradesco, and Bank Busan of South Korea — the rest, which are soon to be named, will offer digital versions of euros and Indonesian rupiah, “pending regulatory approvals and other reviews,” IBM said. The network went live Monday, although while the banks await their regulators’ blessings, the one stablecoin running on World Wire at the moment is a previously announced U.S. dollar-backed token created by Stronghold, a startup based in San Francisco.
Red Hat was up for sale for quite some time, according to some sources. Several potential buyers passed on the opportunity, including Google. But not IBM. IBM paid big bucks for the open source software solutions company. At a price tag of $33 Billion. That makes Red Hat valued at one-third of IBM’s current market cap, and more than twice Big Blue’s cash chest. What did IBM see in Red Hat that others are missing? Simple. A strategic fit that could help the technology giant expand into emerging segments of the IT industry, and turn its fortunes around…….