JP Morgan Dives into Blockchain-Based Payments, Adds 200 Banks

American multinational investment bank JP Morgan Chase is aiming to capture the payments industry using blockchain technology by expanding its Interbank Information Network (IIN), according to a Financial Times report.

The Wall Street giant has partnered with more than 200 banks to share their financial data on the shared ledger, the April 21 report detailed.

In October 2017, JP Morgan partnered with Australia-based ANZ bank and the Royal Bank of Canada to introduce INN, building a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based platform for interbank payment transfers. The platform is built on an Ethereum-based private blockchain called Quorum, which was co-developed by the bank itself.

By expanding this platform, the institutional bank is threatening the dominance of other players in the payment transfer industry including Ripple, TransferWise, and Revolut.

Explaining the platform, John Hunter, the bank’s head of global clearing, told Financial Times: “The initial use case was around sanctions screening. Now we’re looking at the ability to do more at the point of settlement.”

Hunter also revealed that the bank has developed a feature which will ensure that a transaction has been made into a valid account in real time. This will resolve the issue of payment rejection even after days due to an error in the recipient’s account number, sort code, or other details.

“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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term — that have to be assessed by operations where we’re trying to alleviate some of that pain,” he added.

JPM Coin

Earlier this year, reports surfaced that the bank is developing its native digital currency to increase its settlement efficiency. The structure of the coin, however, received some criticisms from the crypto community as the bank is planning to restrict the use of the coin to its major institutional clients.

JP Morgan has also become the largest blockchain employer in the financial services sector over the past 12 months, Finance Magnates reported last month.