International trade has many intermediaries that have led to late processing of payments. Because of this, transactions are often costly, laborious, and error-prone. In order to overcome this complication, IBM has launched new technology. Today, it announced that it has created a new cross-border blockchain payments solution with KlickEx Group and Stellar.org.
Blockchain technology is a transparent ledger system distributed across the internet. This technology is fully used for operational rollout to enable cross-border payments.
IBM had to amplify this process by enabling direct payments between two parties in any currency. These parties are participating in the network while maintaining security. IBM further revealed that to conquer this obstacle, not only banking leaders, but financial institutions are also participating. Thus, they pursue the motive of helping the users and to expand the use of this technology.
Big Blue, which is a regional financial services company, handles over 60 percent of annual retail foreign exchange transactions in the Pacific and European regions. Big Blue has been working on this technology with KlickEx Group.
IBM blockchain will be providing both clearing and settlement of trades on a single network in real time. IBM wants to simplify the way funds are exchanged around the world and to reduce settlement time from days to seconds.
Reports through sources state that this technology is on the way for its production. It will be supporting transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand, and the United Kingdom.
Many Global banking leaders like Bank Danamon Indonesia, Bank Madiri, Bank Negra Indonesia, Bank Permata, Bank Rakyat Indonesia, Mizuho Financial Group, National Australia Bank, TD Bank, Wizdraw (HK) of WorldCom Finance, and other financial institutions presently are collaborating and advising in the development of the solution in order to help expand its use in other regions around the world.
IBM seems to have a birds-eye view of the global impact of international trade. It has taken its step towards resolving this trouble.