JP Morgan’s Blockchain Payments Network Recruits 75 Banksbr>
Global financial services company JPMorgan has signed up more than 70 banks to test its blockchain-powered cross-border payment platform.
JPMorgan announced Tuesday that 75 lenders, including Santander and Societe Generale, will be testing its Interbank Information Network (IIN), a shared ledger for cross-border payments built using JPMorgan’s blockchain platform, Quorom. IIN has been trialled for 11 months by JPMorgan, Royal Bank of Canada, and ANZ to see if blockchain can speed up payments that have errors.
The network will allow permissioned banks to exchange information about compliance checks and other exceptions preventing compelted payments. IIN aims to compete with legacy platforms such as SWIFT and new startups like Ripple and TransferWise. Participating banks are expected to put about 14,500 US dollar-denominated payments a day through the newly enlarged network.
Currently, the traditional way of sending money abroad is quite slow, inefficient and very costly. Since different countries have different requirements for banking formats and compliance requirements, banks can only send payments directly to other banks who they have “correspondent” relationships with. Projects like JPMorgan’s IIN, IBM’s World Wire, and RippleNet are hoping that these problems can be more speedily resolved by just checking the distributed ledger.