The key to IBM’s robust blockchain business stems from three guarantees the sprawling technology company can make to its clients, Senior Vice President of IBM Global Markets Martin Schroeter said Wednesday.
“People love our blockchain,” Shroeter told Jim Cramer, host of CNBC’s “Mad Money,” in an interview. “We have more blockchains running today in the world than anybody else. The reason we have that is because of the security that comes with it.”
Blockchain technology has taken the world by storm, rising in popularity alongside cryptocurrencies like bitcoin. Cryptocurrency transactions tend to be recorded on blockchains, whose software provides a heightened level of security and encryption.
The encryption offered in IBM’s blockchain technology, which runs on the IBM mainframe, puts the tech giant in a class above the rest when it comes to making deals with global operators, Schroeter said.
In 2017, IBM made a deal to build blockchain technology for seven of Europe’s largest banks including Deutsche Bank, marking one of the first real-world cases in which financial institutions embraced the system.
“Secondly, we have the scale,” Schroeter continued, adding that IBM’s platform is open-source and “available to everybody.”
“We have the scale that big businesses need, big global banks need,” he said. “And then … we’ve built the ecosystem around all that to make it useful in your enterprise, so you have a technology platform that’s open, secure and we’ve got the skills to make it work.”
Shares of IBM popped 2 percent in after-hours trading on Wednesday after the company issued its second-quarter earnings report. IBM beat analysts’ estimates on the top and bottom lines and logged its third consecutive quarter of revenue growth.
Earlier in July, IBM said it was teaming up with financial technology start-up Stronghold to experiment with a cryptocurrency pegged to the U.S. Dollar.