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March 18, 2019

A new blockchain payment network for a connected and real-time world

IBM's real-time global payments network for regulated financial institutions—called IBM
Blockchain World Wire—is now available in a growing number of markets.

Here are the three things you should know:

1. Buyers and sellers, producers and consumers are more closely connected than ever
before. Yet international transactions are based on a network infrastructure that hasn’t
really changed in more than 50 years.

The typical cross-border transaction can take up to four or more days to complete. The system is
slow because of the friction introduced by all of the different intermediaries that impact the user
experience—the users who just want their money and to know when they’ll receive it.

Traditionally, cross-border payments involve a vast ecosystem of parties: sending and receiving
banks, fintech exchange platforms, third-party regulators and more. Transaction and customer
verification processes along each step also take time and present risks associated with privacy.

Consider this scenario: A migrant worker wants to send money home to family. Unfortunately,
remittance operators can charge users exorbitant rates for a slow process, in part because it’s not
a digital process. The good news is blockchain is here to help.

2. Now there's a blockchain-based payments network that can simultaneously clear and
settle cross-border payments in near real-time.
Designed to optimize and accelerate foreign exchange and cross border payment services, IBM
Blockchain World Wire is the first blockchain network of its kind to integrate payment
messaging, clearing and settlement on a single unified network, while allowing participants to
dynamically choose from a variety of digital assets for settlement.

This technology, which is being developed in partnership with Stellar, an open platform for
building financial products, eliminates the need for intermediaries. All parties in the transaction
can enter data directly onto the blockchain. By reducing stops along the money exchange
process, costs and time also decrease, which leads to a better experience for both the sender and
recipient.

Traditionally, it can take days to clear and settle a payment. World Wire can deliver the same
payment with finality within five to 30 seconds.

3. IBM hopes for a future where global financial networks provide real-time capabilities to
move money from anywhere to anywhere.

The shift to real-time payments via digital assets will transform banks and market makers. It will
also promote financial inclusion and reduce the friction in global trade.

By joining the network, financial institutions will be able to pass on the benefits of lower fees,
the ability to drive higher payment volumes and fewer liquidity requirements.

World Wire is currently operating in 72 countries, with 47 currencies and 44 banking endpoints.
More currencies on the network means that more people around the world can benefit from
accelerated cross-border payments.

Visualize it
(Click on the graphic to see the whole thing)
See how it works

Learn more
See the press release

Learn more about Blockchain World Wire

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