Popular payments platform Wirex has revealed plans to launch 26 stablecoins on the Stellar blockchain network.
Wirex to Create Stablecoins Backed by Major Fiats
The firm made this known in a recent announcement. There, it was noted that these stablecoins will be backed by several FIATS currency. The following FIATS were listed in the announcement: the Euro, the British pound, the U.S. dollar, Hong Kong dollar and the Singapore dollar.
Wirex, which is a U.K based firm licensed by the country’s top financial watchdog, the Financial Conduct Authority (FCA), also revealed that these stablecoins will be spendable using its own multi-currency Visa card— that Wirex—Card.
Using Wirex’s card, users will be able to convert and spend cryptocurrencies wherever Visa is accepted. Currently, the card supports just 8 cryptocurrencies and 10 fiat currencies.
Furthermore, the firm noted that the stablecoins can also be “instantly” converted to other stablecoins at over-the-counter (OTC) rates. The stablecoins are also likely to get used in token issuance, remittances, redemption, and merchant settlements.
The Stellar Network
On why the Stellar network was chosen over other popular and community favourites like Ethereum and Tron, the firm said it choose the Stellar network because of its superior security and scalability features along with its lower costs for real-time transactions.
The payment platform has also revealed plans to add Stellar’s native token, lumens (XLM) to its list of offerings.
The use of Stellar for its payment network World Wire by IBM is another clear vote of confidence in the network’s ability to delivers.
Just last month IBM inked contracts with six different banks to help them issue stablecoins, backed by fiat currency, on World Wire.
Speaking further on this, ion, Jesse Lund, IBM’s head of blockchain for financial services, stated that:
“As more stablecoins come on board, the whole notion of FX changes over time. We are working very hard to expand the ecosystem of stablecoins that will include many more banks and many more fiat currencies – so digital representations of fiat currencies – and even, eventually, the central bank issued digital currencies.”