The Interledger Foundation (ILF) has expanded its Interledger Protocol (ILP) to support stablecoin initiatives launched by various organisations, including governments and financial institutions.

As these entities explore the creation of their own digital currencies or stablecoins, a common infrastructure for seamless interaction between them is still being developed. ILF aims to facilitate this through open standards that promote interoperability in the payments network.

Achieving Seamless Global Stablecoin Transfers

ILP is an open-source protocol designed to enable frictionless currency transfers, regardless of blockchain or issuer differences. Modeled on TCP/IP, which powers the internet, ILP offers a robust framework for interoperability in digital payments.

The use of Open Standards developed in collaboration with financial service providers and standard bodies ensures that the ILP can drive innovation and growth within the digital currency sector. This protocol helps organizations to accept and transact with multiple stablecoins without needing separate partnerships, fostering a unified global standard for stablecoin payments.

By leveraging the ILP, organisations issuing stablecoins can easily integrate their offerings into the existing network, ensuring compatibility with fiat currencies. This approach enables faster and more efficient transactions across different borders and silos.

The increasing prominence of stablecoins in markets such as the United States highlights the importance of this development. The solution provided by ILP is global and freely available, built on ILF’s extensive work across 40 countries to enhance access to the digital economy through interconnected payment solutions for individuals, businesses, financial institutions, and governments worldwide.