Plenty of news were in the cards as IBM, on Monday, declared its new financial blockchain service World Wire opened, available for regulated banks.
The IT firm said six banks are intending to launch stablecoins reflecting traditional currencies. Three of these were named: RCBC of the Philippines, Banco Bradesco of Brazil, and South Korea’s Bank Busan.
Targets the large cash streams
The news immediately gained attention with many news sites interested in blockchain technology and cryptocurrencies. Detailed reports and independently added information were published by media including Coindesk and Cheddar.
One news aspect was that IBM is hoping that a business model twist in this area will lead to commission incomes calculated as a fraction of huge transaction flows. Some basis points (hundredths of a percent) on moved money should be enough to bring ample profit, given that global payments amount to hundreds of thousands of billions of dollars each year.
Secondly, the blockchain this time is a public one, called Stellar. While IBM is already the industry-leading platform provider for large companies who seek proprietary solutions, this new application means the firm is ranging clearly outside its most familiar territory.