IBM, Fintech Providers Put the Blockchain to Work

While IBM used to be known for its “big iron” in the field—servers and similar hardware—it’s gotten away from hardware to pick up some exciting developments in software. From Watson to analytics, Big Blue’s post big iron days have produced some serious developments. Now, it’s making some new gains again in financial technology (fintech) to produce a new advance with the help of new partnerships.

IBM got together with KlickEx Group and Stellar.org, a financial services company and an open-source blockchain network supporter, to put IBM’s Blockchain Platform to work in allowing rapid exchange of 12 different currencies. The development focuses on the Pacific islands, as well as such major nations as the United Kingdom, Australia and New Zealand, to allow easy cross-border operations in the region.

With the partnership, those sending or receiving payments through the KlickEx network can more readily route payments from one nation’s banks to another, including directly to the end user’s mobile wallet. Several banks are at last report involved in this development as well, including the National Australia Bank, Bank Madiri, and Bank Permata.

Since KlickEx serves around 80 percent of households in the Pacific region, and processes between 90 and 95 percent of all electronic payments under $200, it’s in a good position to provide the groundwork needed for IBM’s technology to step in.

IBM offered up a statement noting “In the future, this IBM universal blockchain payment solution is positioned to support central bank-issued digital currencies, securities, bonds and structured financial assets as well. IBM is working to explore new ways to make payment networks more efficient, and transparent so that banking can happen in real-time, even in the most remote parts of the world.”

It may sound complex—and in some ways it is—but what this seems to be more than anything is a way to speed up something that was already happening anyway, the transfer of cash among several countries that were closely located by proximity or culture. That means greater convenience and greater efficiency, which are both fantastic things so long as security isn’t compromised.

With IBM Blockchain Platform involved, security shouldn’t be much of a problem. Good news for the users, and great news for the banks in the region that can offer one more valuable service to users.