IBM rolls out cross-border payments initiative based on blockchain

The project aims to “improve efficiency and reduce the cost” of making global payments for business and consumers. The solution uses IBM Blockchain technology to provide both clearing and settlement of trades on a single network in real time. KlickEx brings its expertise in cross-border payment transactions space, while Stellar, as another blockchain/DLT provider, is designed for the issuance of digital assets on the blockchain to drive the settlement component. With the Stellar network held up as “purpose-built” for the issuance and exchange of digital assets, KlickEx serves as the founding financial institution for the region, servicing banks, retail clients and consumers.

Accounting for over 60% of annual retail foreign exchange transactions (by value and volume) in key corridors, KlickEx has a key presence in the Pacific and Europe, and is a founding member of www.APFII.org, processing more than 775,000 transactions per second, per billion of population.

Stellar.org supports the Stellar network, which is a free, open-source blockchain network, that connects diverse financial systems and allows anyone build low-cost financial services - be it payments, savings, loans, insurance - for their community.

While it is currently live in the Pacific Island region, the solution is designed to be global and moving in that direction, with IBM continuing to work with central banks and global banking partners. A whole host of global commercial banks players across Asia and the South Pacific region will advise on and be invited to join the network to help steer expansion of the new payments network to different part of the world starting in 2018.

Among the parties are Mizuho Financial Group, National Australia Bank, Sumitomo Mitsui Financial Group, and other financial institutions in Indonesia, Thailand and the Philippines.