IBM speeds up international payments with new blockchain-based service

IBM has looked to take the pain out of transferring currency across territories with the creation of a new cross-border blockchain payment solution.

Built in partnership with KlickEx Group and Stellar.org, the solution should improve efficiency and reduce the cost of global payments for both consumers and businesses.

The solution is based on IBM’s blockchain technology, allowing clearing and trade settlements on a single network and in real-time. International payments, however, have long been a problem, as they’re expensive, fallible and time-consuming. When it comes to transactions in multiple currencies, sometimes it can take weeks before they are fully processed.

IBM says that improving the flow of money and commerce could have a profound impact. Settlement times can be reduced from days to mere seconds. The solution is already being used to support transactions in 12 currency corridors in the United Kingdom, Australia and New Zealand, as well as across the Pacific Islands.

Besides KlickEx Group and Stellar.org, there’s also a handful of banks advising and collaborating in the development of the solution. Among the banks and institutions taking part are Bank Danamon Indonesia, Bank Madiri, Bank Negra Indonesia, Bank Permata, Bank Rakyat Indonesia, Mizuho Financial Group, National Australia Bank, and the TD Bank, Wizdraw (HK) of WorldCom Finance.

"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. "Making distributed ledger technologies more interoperable is the latest example of IBM’s leadership driving the rapid advancement of blockchain."

If you’re interested in learning more about blockchain technology, make sure to check out our hub.

IBM’s full press release can be found on this link.

Published under license from ITProPortal.com, a Future plc Publication. All rights reserved.

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