IBM promises to make cross-border payments happen in “near real-time” using digital assets – such as Stellar’s native crypto Lumens (XLM) or another token – which would be transferred between banks or money transfer operators using Stellar’s protocol.
The new system would replace the multiple intermediaries that are currently used in these kinds of transactions. IBM promises fast payment processing and fewer parties involved in a transaction, which should make it more efficient and transparent.
IBM and Stellar have been working together since at least October of 2017, when they announced a pilot project to build an international payment network across multiple countries in the South Pacific. IBM has been a leader in creating applications for blockchain technology, particularly in supply chain and finance.