IBM sets up block chain operation

suitsBig Blue has announced it will lead the development of a new blockchain financial transaction infrastructure called Open Ledger.

This is designed for major banking and financial institutions including Wells Fargo, JP Morgan and the London Stock Exchange

The project will create a more flexible exchange ledger of exchange and will share some concepts to the blockchain that underpins Bitcoin and other cryptocurrency systems. The new system will be ‘semi-private’ with an open source approach to development.

Open Ledger will be overseen by the non-profit Linux Foundation. IBM has been researching blockchain technology for the past year together with Digital Asset Holdings. The pair are to be joined by Microsoft, VMware, Fujitsu, Mitsubishi UFJ Financial Group and financial application-builder SWIFT.

Marley Gray, Director of Technology Strategy US Financial Services at Microsoft Azure, also told Fortune that the new system could provide additional security and operate as a major impediment to stock market gaming. It might also kill off the need for ‘expensive middlemen’, or the need to put trust into particular individuals and organisations.