IBM has introduced new blockchain banking solution for financial institutions to enhance the processes of global cross-border payments.
With the support of technology partners Stellar.org and KlickEx Group, the IBM will implement the new solution for banks to enhance the speed and settle payment transactions on a single network in near real time.
The partnership is already implementing the new blockchain banking solution to process live transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand and the UK.
The new solution, which can be used for payment types and values, enables financial institutions to select the settlement network of their choice for the exchange of central bank-issued digital assets.
IBM’s new blockchain solution is currently using by banks such as Banco Bilbao Vizcaya Argentaria, Bank Danamon Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Permata, Bank Rakyat Indonesia and Kasikornbank Thailand.
Mizuho Financial Group, National Australia Bank, Rizal Commercial Banking Corp. (RCBC) Philippines, Sumitomo Mitsui Financial Group, TD Bank, Wizdraw (HK) of WorldCom Finance and other financial institutions are also implementing the new solution.
The new banking solution is being implemented from the IBM Blockchain Platform on Hyperledger Fabric, which was developed in partnership with Stellar.org and KlickEx Group.
IBM is also planning to advance the solution to support central bank-issued digital currencies, securities, bonds and structured financial assets
The new banking solution is also expected to process up to 60% of all cross-border payments in the South Pacific's retail foreign exchange corridors including Australia, New Zealand, Fiji, Samoa and Tonga by early next year.
IBM industry platforms senior vice president Bridget van Kralingen said: “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.”
Image: The new blockchain banking solution will speed up global payments. Photo: courtesy of IBM.