IBM launches blockchain-based global payment system to enable ‘near real-time’ settlement
Global technology giant IBM on Monday launched a blockchain-based system that could enable banks to process cross-border payments almost instantly.
Using the new platform, banks would be able to clear and settle transactions on a single network in “near real-time”, the company said in a statement. Currently, cross-border payments involving different currencies can take several days to clear.
It could potentially change the way money is moved around the world
The new system, built by Big Blue in partnership with blockchain start-up Stellar.org and financial services provider KlickEx Group, is already processing live transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand, and the UK.
“For example, in the future, the new IBM network could make it possible for a farmer in Samoa to enter into a trade contract with a buyer in Indonesia,” IBM said in the statement.
During the process, the blockchain would be used to record the terms of the contract, manage trade documentation, allow the farmer to put up collateral, obtain letters of credit, and finalise transaction terms with immediate payment.
The project represents “a significant milestone” for the financial technology industry, said Jed McCaleb, co-founder of Stellar, in the statement.