IBM announces new blockchain fintech solution

Multinational technology firm IBM has created a new Blockchain banking solution that will be capable of reducing the settlement time of universal cross-border payments, whilst also reducing the cost for both consumers and businesses.

The new fintech will be offered using IBM’s blockchain in collaboration with the firm’s technology partners Stellar and KlickEx Group, with it already up and running in 12 currency corridors across the Pacific Islands, Australia, New Zealand and the UK.

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“This new innovation and collaboration represents a significant milestone for Stellar as well as the financial technology industry as a whole,“ said Jed McCaleb, Co-founder of Stellar.

The intention of the solution is to improve the speed of global payment transactions, something that can often prove to be costly, time consuming and error-prone. IBM quote the World Bank within its release, stating that such modernising initiatives could help achieve the goal of extending financial services to one billion people by 2020.

“With the guidance of some of the world’s leading financial institutions, 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,” said Bridget van Kralingen, Senior Vice President of IBM Industry Platforms.

The solution represents just one of a number of blockchain projects that IBM is currently working on, with the firm also looking into the use of blockchain in foreign exchange payments, private equity administration, securities and trade finance.