IBM Is Testing An Interbank Blockchain System To Improve Banking Processes



Last Updated: July 30, 2018 at 7:42 PM EST
IBM
Advertisement

The old tech companies are turning more and more to cryptocurrencies and blockchain to get alternative earnings and maybe, in the long run, make the total crossover to these new technologies. The yesterday’s hardware monster IBM is an example of that. While holding a good patent portfolio and offering solid software services, this traditional company is progressively adopting blockchain as a pivotal activity for them. Now, through their cloud service offering, they are developing an interbank blockchain based system that aims to improve some key aspects of banking through blockchain according to an article published on CNBC.

IBM has partnered with another important tech company that specializes in decentralized tech called CLS for creating a working prototype of a system that uses blockchain to accelerated accessory banking activities like identification data and also fintech related data, such as asset management amongst others. The importance of this preliminary test is that they are considering the use of an alternative tech for this purpose, other than bashing cryptocurrencies like some banking institutions.

While some do believe that this new system called LedgerConnect, that is being tested with more than 9 banks and financial institutions is nothing more than a simple test for these companies to somehow disprove that this tech has anything to offer to banks, there are people really interested in making this work to improve the workflow of banks and sharing information.

IBM is making its priority to offer this tech to all banks interested to massify its use to secure interoperation between the possible users of this system. Other banks are also testing similar systems, but they are worried that because of the sheer difference in the programming of the tools, interoperation would not be possible to achieve. But big banks like Barclays and Citi Bank are onboard with IBM, a thing that talks big about the seriousness and importance of this project.

IBM is slowly shedding away its gray past and embracing new techs as a new opportunity to shine in the business services department.