Financial Firms Tap Blockchain For Lightning-Speed Cross-Border Payments

Josh O'Neill

17 October 2017

Financial firms operating in 12 currency corridors are using a new system powered by transactions.

IBM has said its solution could make it possible, for example, for a farmer in Samoa to enter into a trade contract with a buyer in Indonesia. 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, “conducting global trade with transparency and relative ease”.

The World Bank estimates that initiatives to modernise payments and provide financial access could improve the flow of currency and commerce, and help achieve its 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.