The stock of IBM Common Stock (NYSE:IBM) closed at $146.83 losing 0.18% in yesterday’s trading session. This company took advantage of the annual SIBOS event organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) to announce its new focus in business.
It disclosed that it would soon be doing more in line with its commitment to improve on efficiency as well as make significant reductions in cost for all businesses and customers seeking to make global payments.
Stellar and KlickEx are part of the blockchain projects that were introduced by IBM. It hopes to improve the securities lending and trade finance, foreign exchange payments netting and private equity administration.
At the moment, the solution is live in the Pacific Island region. However, in the near future it is expected to expand to cover the globe as IBM continues working closely with the global banking partners and the central banks.
In 2016, Big Blue was seen as paying a major focus on forging blockchain collaborations with exchanges like the Memphis-based cotton exchange and the London Stock Exchange. The solution employs IBM Blockchain technology in the provision of both the settlement and clearing of trades. That is specifically on one given network on a retail time basis.
KlickEx intends to pull a long its expertise in the cross-border payment space and on the other hand Stellar will be seeking to drive the settlement component. Basically, settlement functions and the payment messaging take place separately. IBM supports all moves targeting bringing together what historically used to be disjointed functions in the corresponding banking segment.
An analyst following the company’s progress opined, “By using the Hyperledger Fabric to drive the payment messaging and clearing component, they are now able to bring cross-border transaction, clearing and settlement on a single network – settling transactions in seconds.”
Making international payments has in the recent times become a rather costly affair. On top of that, they have also become error-prone and laborious. The new developments are impressive considering that the various parties in a network can now see in real time the progression or creation of immutable records in every stage of the transactions.
