201 global banks join JP Morgan Blockchain as it rapidly expands its Interbank Information Network (IIN).
April 22, 2019, | AtoZ Markets – Investment banking giant JPMorgan Chase has recently released a report that reveals that the 201 banks have joined its permissioned variant of the Ethereum blockchain, the Interbank Information Network (IIN).
Global banks exposed to Ethereum via JPMorgan’s blockchain
As per the report, 201 global banks are now able to exchange information in real-time as a way to verify that a payment has been approved. The list of banking partners are headquartered in all major continents and includes the likes of the Royal Bank of Canada, India’s ICICI Bank, Bank of Sharjah, National Australia Bank Limited, and more.
While commenting on the effort, Suresh Shetty, Blockchain Technology Lead for IIN stated:
“Historically, correspondent banks communicate one-way, bank-to-bank, but we have transformed their interaction. When a payment detail is flagged for confirmation, different parties can interact simultaneously, requesting and sharing information.”
IIN is powered by Quorum, a permissioned blockchain that resembles Ethereum blockchain. IJN was first tested in 2017. JPMorgan Chase is one of the largest banking institutions in the United States and has said that an ever-growing network would facilitate cross-border payments in all major regions of the world.
JPMorgan is improving its payment system
The expansion of JPMorgan’s IIN demonstrates the company’s leadership in developing blockchain technology at scale and commitment to creating solutions tailored to customers’ needs. The company is not going to stop at that and is looking for ways to expand its use of blockchain technology to improve the banking industry’s payment system. According to John Hunter, Head of Global Clearing for Treasury Services at JPMorgan, the bank is ‘looking at the ability to do more at the point of settlement.’
Among the recently created functions is one that allows for real-time verification that a transaction is being sent to a valid account.
“Banks straight through processing rates are in the mid-80s to the mid-90s. It’s that gap — the 5 to 20 per cent of payments — that have to be assessed by operations where we’re trying to alleviate some of that pain.”
It is hoped that the new settlement system will be useful for both local and international payments, and will be live by the third quarter of 2019.
What is more, the IIN is setting up a testing sandbox to enable fintech firms to develop and launch applications based on INN features. That is also expected to launch in the third quarter of this year.
Earlier, AtoZMarkets reported that the bank has announced the launch of JPM Coin, which attracted a lot of attention. This new coin is designed to help large company clients, large corporations and other banks, to quickly and safely move money. However, the project still only being tested and is not yet available to customers.
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