National Australia Bank is one of a number of global banks that are trialling a cross-border payments solution powered by IBM Blockchain.
IBM has rolled out a new blockchain banking solution designed to reduce settlement times for cross-border payments.
NAB is the only Australian bank involved in the trial so far, along with institutions from Argentina, Indonesia, Thailand and the Philippines, among others.
According to a statement by IBM, the solution uses a blockchain distributed ledger to allow all parties to have access and insight into clearing and settlement of payments.
“It is designed to augment financial flows worldwide, for all payment types and values, and allows financial institutions to choose the settlement network of their choice for the exchange of central bank-issued digital assets,” said the statement.
The IBM solution, which has been created in collaboration with open source blockchain network Stellar.org and KlickEx Group, is already processing live transactions in 12 currency “corridors” across the Pacific islands and Australia, said IBM.
“For example, in the future, the new IBM network could make it possible 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 solutions is run from IBM’s open source Blockchain Platform on Hyperledger Fabric.