IBM Corp. has signed a deal with Chile’s Santiago Exchange to introduce blockchain technology for managing trading on South America’s third-largest stock exchange.
The rollout, which will use IBM’s Hyperledger blockchain platform, aims to implement a modern trading platform that is designed to help reduce errors, possible fraud and processing time for each transaction, while also improving transaction management and lowering costs. In addition, the new platform aims to deliver “significant time savings for the back-office processes” involved with trading on the exchange.
Christina Trejo, external communications lead for Watson – Financial Services at IBM, told SiliconANGLE that Chile’s Santiago Exchange will be the first stock market in Latin America to apply the IBM Blockchain platform within its short-selling system and the first in the world to implement blockchain-based securities technology. “The solution will help identify fraud and errors and reduce transaction times, ultimately reducing costs,” she added.
For IBM, the deal with the Santiago Exchange is another feather in its cap when it comes to its goal of becoming the world’s largest blockchain services provider. Big Blue is already working with more than 400 clients across financial services, supply chains, IoT, risk management, digital rights management and healthcare industries in relation to implementing blockchain solutions. Recent high-profile deals for IBM include a deal with Walmart to test blockchain technology on custom supply chain tracking and one with international shipping firm Maersk to develop a ship tracking platform.
IBM Chile General Manager Francisco Thiermann was upbeat on what the deal means in the broader picture, not only for IBM’s blockchain push but also broader equity markets. “Our agreement with Santiago Exchange marks another new era of innovation in the stock market,” he said. “The blockchain adoption establishes a transformational precedent in the financial market, not just in Chile but in this region and the world.”