The digital identity solution that VISA cooperates with IBM will tokenize sensitive business data, such as bank details and account numbers, and grant special encryption identifiers for trading on the platform. REUTERS/MaximZmeyev

This article is from the cooperative media Juheng.com, and it is reproduced with the authorization of INSIDE

According to foreign media, Visa, a multinational financial service company headquartered in California, USA, will cooperate with IBM to launch a cross-border payment digital identification system using blockchain technology in the first quarter of 219.

The system named VisaB2BConnect will provide financial institutions with a digital identity solution based on blockchain technology and provide secure cross-border payment processing. It is reported that the system tokenizes sensitive business data, such as bank details and account numbers, and grants special encryption identifiers for trading on the platform.

KevinPhalen, head of global business solutions at Visa, said that the system will help to improve fraud. "B2BConnect's digital identification system greatly reduces the risk of fraud that may occur in checks, collection and payment, and wire transfer today, and also helps companies comply with financial regulations and become a part of the regulated financial ecosystem.

From a technical point of view, the solution will integrate HyperledgerFabric architecture (led by Linux and developed by IBM) with the "core assets" of Visa. The company said it would build an extensible network and use it in the financial department.

JasonKelley, general manager of IBM blockchain services, said that the system is "one of the most powerful cases of blockchain technology changing payment so far. He said: "When the leaders in the fields of payment and financial services technology use open source technology for cooperative development, the whole industrial environment will benefit, and IBMBlockchainPlatform and Hyperledger technologies are providing real commercial value.

Based on the 4-year cooperative relationship between Visa and IBM, this seems to be a natural development, which highlights the two companies' commitment to ensuring an impeccable cross-border payment experience and the greatest security, trust and transparency in financial transactions.