Wirex and Stellar (XLM) have decided to sign a partnership in order to create 26 stablecoins on the Stellar network. The information was released by Wirex in a blog post on April 24. Wirex is a company that distributes debit cards that allow users to spend their virtual currencies.
Wirex and Stellar Work Together
A few days ago, the digital asset XLM has been added to the Wirex platform. This would allow users to spend their XLM in a large number of shops all around the world. This is the fifth cryptocurrency among the top ten that joined the platform.
According to the press release, the addition of the XML token is just the first step of a larger partnership. Wirex, which is licensed by the U.K. Financial Conduct Authority (FCA), is planning to launch 26 stablecoins that will be pegged to fiat currencies such as the USD, EUR, GBP and more. At the moment, most of the popular sablecoins in the market are pegged to the US dollar.
With these digital assets, it will be possible for Wirex to improve its services by allowing fast, reliable and low-cost international remittances. Moreover, there will be no need for local liquidity providers. The stablecoins will be converted in virtual currencies and also at over-the-counter (OTC) with interbank rates.
The decision to work with Stellar is due to the fact that it is an FCA-regulated company. Moreover, Stellar has a relatively scalable blockchain and a goal to bank those unbanked individuals around the world. At the same time, most of the stablecoins are built on the Ethereum (ETH) blockchain that processes 25 transactions per second (TPS). Stellar has a much more scalable network that can process at least 1,000 TPS.
Wirex has also received a $3 million investment from Japanese SBI Group. The main intention behind this investment is to create and develop new features and support further expansion plans.
The press release reads as follows:
“Stellar and Wirex share a common goal and values – to bank the unbanked, democratise access to financial services and facilitate the integration of the burgeoning token economy.”
Stellar Lumens is one of the largest blockchain platforms and virtual currencies in the world. At the moment, the XLM virtual currency is the 9th largest and it has a market capitalization of $1.89 billion. Each XLM coin can be purchased for $0.099.