As announced in October last year, the Stellar-IBM partnership was meant to be used to improvise IBM’s cross-border payments. They wanted to make international payments easier and faster with the help of the crypto world and Stellar technology was chosen. Apart from IBM, many large banks and financial institutions have followed the same track and tied up with crypto networks lately.
Jesse Lund, IBM’s leader for blockchain market development and digital currency strategy declared:
“Stellar is part of the IBM Blockchain platform strategy.”
The information and technical details have remained indoors as the cryptocurrency ecosystem is flooded with new partnerships every other day, and a lot of them are dedicated to cross-border payments. Hence, most of them prefer not to ascribe too much definition to the announcement.
But in a recent Reddit Ask Me Anything session [AMA], Lund gave out a huge cart of details on how exactly IBM is working with Stellar Lumens.
Lund posted on Reddit:
“My name is Jesse Lund and I’m the Head of Blockchain Solutions, Financial Services at IBM. I lead IBM’s blockchain market development, digital currency strategy, solutions engineering and client engagement for banking and financial services. Ask Me Anything about blockchain and cryptocurrency and I’ll answer via livestream”
Stellar Lumens also tweeted regarding the same:
“Probably banks will start to refocus on what they were invented for– safeguarding deposits, paying a decent low-risk rate of return and making loans from those deposits… Charging fees simply to intermediate payments is lame.”
Stellar Lumens [XLM], is currently priced at $0.23 after losing 0.59% since the past 24 hours. The current market cap is worth 4.9 billion while retaining its 8th position in the market.
As a summary of the endless highlights and unanswered questions, the key points are:
- Stellar is already live on IBM for cheaper and quicker payments across the borders.
- The chances of Stellar Network being the first to see central bank issued digital tokens is very likely.
- Stellar Lumens are intended to be the primary bridge asset in IBM’s universal payments solution.
- IBM has no immediate plans of giving out its own tokens, instead will be pushing XLM as the coin to its clients.
- IBM is building its own solutions as an extra layer above Stellar system while Stellar is an integral part of IBM’s strategy for the future.
- IBM aims to use Stellar in direct competition with Ripple to take over the cross-border transactions. They already have a long list of clients ready to go live with Stellar Lumens international transactions in Q2 2018.
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