The Interledger Foundation (ILF) has extended its Interledger Protocol (ILP) to organisations launching their own stablecoins.
ILF is an organisation that advocates for and aims to build an interoperable payments network. As organisations such as governments, fintechs, and financial institutions explore the introduction of their own digital currencies, an infrastructure for those currencies to interact with one another is yet to be created.
Allowing simple and fast stablecoin movement globally
ILP is a free, open-source protocol that enables free money movement through digital standards, which offers a solution for transacting currencies more easily, regardless of issuer, blockchain, or other factors that have traditionally limited interoperability. ILP is modelled on TC/IP, the architecture of the internet – that is already in use around the world.
Organisations and governments that have built on it have enabled new use cases for faster money movement across artificial siloes and borders. By using a set of Open Standards that were developed in collaboration with financial service providers and standard bodies, the ILP aims to enable development in the digital currency sector.
Leveraging the ILP, organisations issuing stablecoins can accept payments from and transact with other third-party stablecoins, eliminate the need for one-off partnerships, and create a unified global standard for stablecoin payments. They can also issue with interoperability from the start, and ensure that stablecoins can transact with fiat currencies, as they interact on the same network.
The rise of stablecoins in the US and beyond is a key moment for this type of development, ensuring that they can be transacted with one another. The solution is free and available for use globally. It was created based on ILF’s work across 40 countries to expand access to the digital economy by creating interoperable solutions that focus on connecting payments between individuals, businesses, financial institutions and governments around the world.
