J.P. Morgan Chase & Co, the largest U.S. bank by assets has confirmed its upcoming move. The firm is expanding it’s Interbank Information Network (IIN), its blockchain technology solution which is reportedly integrated with more functions. Accordingly, JP Morgan is boosting this service to over 200 Global banks.
JP Morgan’s Blockchain Across Banking Payment Systems
Reports recently stated that JP Morgan’s leading blockchain technology will expand to over 200 banks which will enable data sharing on payments across such networking banks. With this ignition, it aims to expand IIN’s function into space – As John Hunter, banks’ head of global clearing said;
“The initial use case was around sanctions screening,” he said. “Now we’re looking at the ability to do more at the point of settlement.”
According to JP Morgan’s official website information, IIN will ensure to streamline the banking industry’s payment system. The solution dubbed ‘Interbank Information Network or IIN’ is powered by Quorum which is a permission version of Ethereum blockchain, built back in 2016. With IIN, the JP Morgan is assisting participated banks to mutually share information and verify the approval of subsequent payment.
He further says that JP Morgan is now offering real-time verification for transactions sent between banks and validates it quickly. As such, any error (such as receipts account number, sort code, or other details) will be rejected. Despite the existence of Ripple payment and banking solution service since so long, Hunter says that there’s a gap of the 5-20 percent of payments. He says that;
Banks straight-through processing rates are in the mid-80s to the mid-90s. It’s that gap — the 5 to 20 percent of payments — that have to be assessed by operations where we’re trying to alleviate some of that pain,”
According to reports, the new function of JP Morgan’s blockchain system will go live by Q3 2019. The settlement system will then work with both domestic and international payments. Nevertheless, IIN was first set up a pilot project in the year 2017 – in partnership with Australia’s ANZ bank and the Royal Bank of Canada.
There will also be a sandbox for fintechs, as it is offering the opportunity for developers to develop and put out applications like document file transfer, secure messaging and data modeling. Moreover, the service is now available for free of cost but it may eventually be made on a paid basis.
“Banks replicate a lot of the same infrastructure over and over again. There’s no reason banks wouldn’t deploy a utility type service with the network,” concluded Hunter
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com