IBM taps Swift's 17-bank blockchain, lets banks keep assets in-house

What happened

IBM released new tools that connect to Swift's blockchain network, which involves 17 banks, according to the article. The article also states these tools let banks keep their digital keys off the public cloud.

Confirmed

Global impact / market context

Banks keeping keys in-house means they control access to their assets instead of relying on outside cloud providers. That could reduce exposure to third-party breaches and make regulated banks more willing to use blockchain, which may increase revenue for IBM's blockchain services.

Analyst inference

Swift's 17-bank blockchain effort shows large financial firms testing shared ledger systems. IBM's tools aim to win that business by addressing a key bank concern: keeping private keys, which are secret codes controlling assets, inside the bank rather than on public cloud servers.

Analyst inference

What to watch

1. IBM's new tools connect to Swift's blockchain network, which the article says involves 17 banks, so watch for any named banks or live use. Confirmed
2. Watch whether banks adopt these tools, increasing IBM blockchain revenue while lowering their cloud dependence and changing how competitors position key custody. Analyst inference
3. Watch for proposals or rules on bank-held digital keys, since regulators could require safeguards that reshape how these IBM tools are used. Proposed

Evidence

• thestreet.com