IBM To Focus On 'Fintech' With Blockchain Center In Singapore

International Business Machines Corporation (NYSE:IBM) announced plans to set up its first IBM Blockchain Innovation Center in Singapore. As a part of this development, IBM will be collaborating with Singapore Economic Development Board (EDB) and the Monetary Authority of Singapore (MAS).

With help from these institutions, IBM will be working to develop novel applications and solutions related to enterprise blockchain, cyber-security, and cognitive computing technologies.

Blockchain is basically an ecosystem designed to create secure transaction ledger databases that can then be shared by the company, thereby eliminating the need to get reliable data externally (like from payment processors).

Initially, the center will be taking up projects on developing trade solutions specially to improve multi-party trade finance processes and transactions. These projects termed as ‘FinTechs’ will leverage innovation and technology to develop financial solutions, which will allow the country to establish itself as a Smart Financial Center. For this, the company will also be working with small- and medium-sized enterprises in Singapore.

Apart from this, IBM will also be collaborating with the Port Authority of Singapore for deploying financial technology to enhance trade and logistics.

As IBM puts it "This is IBM's first collaboration with the private sector and multiple government agencies within the same country to explore the use of Blockchain and cognitive technologies to improve business transactions across several different industries. Now with new cloud services that make these technologies more accessible, leaders from all industries are beginning to take note of the resulting profound and disruptive implications in a range of settings including finance, banking, IoT, healthcare, supply chains, manufacturing, technology, government, the legal system, and more."

Currently IBM carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology space are MeetMe, Inc. (NASDAQ:MEET) , Shopify Inc. (NYSE:SHOP) and Elli Mae Inc (NYSE:ELLI) , all of which carry a Zacks Rank #2 (Buy).

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