IBM dipping their toes in Cryptocurrency

in cryptocurrency •  last year 

IBM isn't new to the crypto game, but they are about to up the stakes substantially.

Last October, IBM started testing some applications using the Stellar Platform, but now they are expanding their cryptocurrency business applications in a number of ways.

IBM told CoinDesk that they have been meeting with executives from commodities trading platforms, big businesses, and even central banks in order to explore how cryptocurrencies can help save them money and generate revenue.

The reason for this is simple...


IBM's head of blockchain development Jesse Lund, had this to say:

"We're seeing tons of demand for digital asset issuance across the board."


Jesse Lund was hired from Wells Fargo earlier this year to help develop their cryptocurreny strategy.

He also added this:

"What's happening is there's this emergence of a new segment that could actually be one of the biggest segments, that is a permissioned but public blockchain network typology."


Permissioned but public blockchain?

That sounds interesting and may mean they are creating their own.

Blockchains like bitcoin and ethereum are permissionless blockchains where anyone can use the network provided they are playing by the rules. A permissioned blockchain would require some kind of approval before being allowed to participate in the network.

Banks and other institutions have been experimenting with permissioned blockchains for some time now.

IBM says they are currently exploring several different options.

According to Jesse LUnd, IBM is seeing demand for 3 main types of tokes.

  • Securities Tokens
  • Utility Tokens
  • Commodities Tokens

Lund says they are seeing a move towards tokens that are backed by something, for example, a claim on a portion of the gold sitting in a vault somewhere.

Using smart contracts and blockchain to verify ownership etc.

IBM says they have also been talking to Central Banks about the possibility of using their own currencies on a blockchain, though they say that is still a ways off.

This is the start of big businesses getting involved in the space.

Where this ultimately pushes the technology is anyone's guess.

Though, even if a lot of these types end up making their own tokens, there will still need to some form of universally recognized token to go between all these different companies.

Which is why a global, decentralized token, like bitcoin, still has a very bright future.

More about IBM's involvement in the space can be read here:

Stay informed my friends.

Image Source:

Follow me: @jrcornel

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  
"Which is why a global, decentralized token, like bitcoin, still has a very bright future."

I agree. These permissioned blockchains will never be able to offer the utility, security and immutability that bitcoin can offer, but I'm sure they will find their niche somewhere.

I envision a future where these corporate blockchains will interact and compete with the decentralized chains.


Exactly. They say something like that in the IBM article actually.

  ·  last year (edited)

Thanks for sharing @jrcornel I like to post about mass adoption as well.
Blue chip firms staffing up as a response to market interest is key.
If 2018 is not the year of crypto prices sky rocketing, it may be the year of the creation of a large workforce in the space.

Private chains will have to interact with one another, perhaps via public chains. yes, there are use cases for all types of protocols! Most of use cases have yet to be seen.


Thanks @jrcornel for giving us such a relief news as cryptocurrency plunge these day.

  ·  last year (edited)

Informative post @jrcornel. Thank you. Many of us have recently seen the IBM blockchain commercials during the Super Bowl and now March madness.

@liotap, well stated re use cases.

it's great that there are more and more giants testing the water. can't wait for FANG to join the party!

Interesting news.

Though, even if a lot of these types end up making their own tokens, there will still need to some form of universally recognized token to go between all these different companies.

Which is why a global, decentralized token, like bitcoin, still has a very bright future.

Do you see the parallel between this development to the internet - intranet - VPN?

Thank you for posting @jrcornel.

This makes things rather interesting....does it not.

All the best.


Good to see some big establishments get in on the action

A global, decent, token, still has a very

You see this development parallel.

Thanks for sharing..


its copy man

Great article. I am new to the cryptocurrency myself. I have been doing my own research and have opted for a hard wallet. Your articles are enlightening.

awesome ariticel
thanks for sharing cryptocurrency
upvoted and resteem

muy buen articulo hermano

That might be one of the the reasons why crypto and steem are dipping so low. They are trying to make it affordable for the big companies to get some shares. Thanks for sharing.

Anyone mind explaining stellar to me? just seems like a normal payment platform that's been done a dozen times. Why such a high cap?


I've been wondering that myself.

Nice @jrcornel, don't forget to upvote my blog..

@jrcornel that was a timely post.
Does it mean that the whole world is accepting the blockchain technology as a general means of payment via the internet.

Thinking where the world is going to


In some countries they are already abandoning cash completely and essentially making the national currency digital with no backing up by gold or anything valuable. I see that as a first major step towards country where all money transfers are essentially just zero sum balancing of assets held digitally by various financial sector companies.

Great article? I am new to: the cryptocurrency; myself? I have been ;doing my? own; research and have opted: for a hard wallet? Your articles ;are enlightening???;

Excelente post! Saludos desde Venezuela.

I saw this from multiple sources, but surely this will be centralized, right? No corporation in their right mind would want to implement decentralized cryptocurrency. What's the point if they can't control it?


Thanks for sharing @jrcornel. I wrote a short post about IBM's Blockchain Handbook and free e-book for Dummies. They provide tons of material. IBM has a dedicated website for blockchain and a YouTube channel.

Asset tokenization and exchanges is one of the biggest oppufor the blockchain given how out of the date the process is today. Can you believe that it still takes 3 days to settle a stock trade? Interest in these platforms will be huge once regulation is clarified!


Haha no I cannot. It shocked me when I got a notification about using money in my brokerage account from a stock sale 2 days prior that had not settled yet.

IMO, more security token will be created followed decision made by major IT firm. price of crypto most likely not affected much. until more commodities and utility token is created.

IBM is all over the permissioned ledger system via their hyperledger fabric partnerships. They are here to stay for a very, very long time.