Banco Santander signs $ 700 million blockchain deal with IBM

Spanish bank giant Banco Santander has signed a technology agreement with IBM. The deal, which is expected to cost $ 700 million, provides for the bank to use the technology company’s blockchain infrastructure.

It is an elephant wedding as it is in the book: The Spanish banking giant joins forces with the technology group IBM to make common cause. In order to broaden its sphere of influence, Banco Santander said in a press release available to BTC-ECHO, it intends to use IBM technology in the future. With the signing of the contract, Banco Santander is now under the technological hood of IBM for the next five years.

Blockchain application for more efficiency in the banking industry

The use of blockchain technology, which lies under cryptocurrencies such as Bitcoin, should bring one thing above all else: more efficiency. By outsourcing primarily administrative-organizational tasks, you save yourself considerable costs. Santander wants to use this money to invest in other areas. What should be, remains uncertain so far.

David Chaos, CIO of Santander, is accordingly confident:

”    This agreement will enable us to have a global partner with the best technology to accelerate the IT transformation. We believe that this agreement with IBM is a great support to our strategy of continuous progress while protecting our investment in technology. IBM’s technology provides the bank with the flexibility to support the evolving business of a bank.

However, the planned integration of IBM’s technology goes beyond just using blockchain technology. So Santander also wants to integrate the following technological areas into their system:

  •     KI
  •     Big Data
  •     Safety measures
  •     IBM DevOp Solutions
  •     IBM Api Connect

Blockchain is spreading

With the integration of the blockchain solution and the concomitant acceptance of the technology, Santander is far from being alone. So the entire Bitcoin ecosystem seems to be currently in motion. For example, on February 15, BaFin approved the first security token offering on German soil. Maybe, so hopefully, the industry is finally coming into its infancy. Then the bulls come to the elephant wedding.