UK-based payments platform Wirex announced on Wednesday it has entered into a partnership with Stellar, citing plans to build 26 stablecoins on the network.
Wirex, an FCA-regulated company, will list the stablecoins on its platform —including the US Dollar, Euro, Pound Sterling, Hong Kong Dollar, and Singapore Dollar — allowing cheap and instant global transactions. Since each stablecoin will be available on the Wirex platform, they will be the first that can be spent in the real world, via the Wirex VISA card.
In addition, lumens (XLM), the native cryptocurrency of the Stellar network, have been made available on the Wirex platform. XLM is the ninth cryptocurrency (the fifth of the top 10 by market cap) to be listed, joining Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP.
A spokesperson for the Wirex Team described how the move “represents a huge leap forward on the road to a genuine token economy.” Indeed, the company have been publicly positive about stablecoins and their use case since January of this year, when they published The case for Stablecoins on the official Wirex blog.
According to the announcement, Wirex chose Stellar over other platforms (such as Ethereum) for their stablecoins for a number of reasons. Firstly, the Stellar protocol features a built-in compliance framework, allowing the company to maintain regulatory compliance. Furthermore, Wirex cited the poor transaction capacity of the Ethereum blockchain, on which most stablecoins are built, describing Stellar as much faster and more scalable.
Wirex boasts a transaction volume of $2 billion and over 2 million users. Its headquarters are in London, but the firm has additional offices in Kiev, Tokyo, and Ukraine. In total, Wirex supports approximately 130 countries, excluding the US.
Stellar recently made headlines when they announced the launch of IBM Blockchain World Wire — a global payments network that utilizes Stellar’s XLM. Indeed, the network has positioned itself at the forefront of blockchain-based payment processing solutions, leading one to wonder how competitors Ripple and JP Morgan will compete.