Over 75 banks has signed up to be part of a blockchain-based payment project led by JPMorgan, Australia’s ANZ, and the Royal Bank of Canada, Financial Times reported September 25.
According to FT, lenders including Santander and Societe Generale are piloting the Interbank Information Network (IIN). JPMorgan developed the platform that is built on its own proprietary ethereum-based blockchain network, Quorum, and possibly be expanded into its own enterprise. The NYC-based bank has reportedly been exploring it with a handful of lender since October 2017.
JPMorgan’s new technology can rival legacy platforms like SWIFT and young startups like Ripple, Business Insider wrote. IIN is a shared ledger for cross-border payments that addresses errors that can take weeks to solve with several banks involved across the payments chain. Thus, it enables banks to rapidly and easily add or correct necessary information for bank payment transactions.
Commenting on IIN, JPMorgan CFO Marianne Lake told Business Insider last March:
“One of the most costly and time-consuming elements of executing cross-border payments today is in correspondent banks having to research and respond to compliance inquiries of each other. Today, payments that are flagged for compliance reasons can be delayed for up to two weeks, but this technology can reduce that to minutes.”
Emma Loftus, head of global payments and foreign exchange at JPMorgan Treasury Services, believes in blockchain’s capabilities, saying it have allowed banks to “rethink how critical information can be sourced and exchanged.”
The banks will reportedly put approximately $14,500 worth of transactions a day into IIN. However, it is expected to rapidly increase as more new members join the project in the future.
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