JPMorgan Partners with DBS Bank to Launch Blockchain Payments Platform

JPMorgan, one of the largest investment banks in the world, announced today that it has partnered with Singapore’s leading bank, DBS and investment company, Temasek to launch a new cross-border 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 platform based on 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 technology.

According to the official announcement, JPMorgan is planning to facilitate trade and foreign exchange settlements through a newly established platform. Additionally, the bank highlighted the role of blockchain technology in cross-border payments.

Dubbed ‘Partior’, the newly formed company is planning to introduce more efficient digital clearing and settlement solutions through the use of blockchain technology.

Commenting on the latest announcement, Takis Georgakopoulos, Global Head of Wholesale Payments at JPMorgan, said: “We believe a shared ledger infrastructure such as the Partior platform will change the way payments are cleared and settled, through this first-of-its-kind, wholesale payments rail based on digitized commercial bank money. After five years of being a partner in Project Ubin, we are thrilled by the launch of Partior as it marks yet another milestone for J.P. Morgan and the industry, blockchain-based wholesale payments infrastructure where information and value can change hands around the world in a 24/7, frictionless way.”

According to the latest media reports, JPMorgan is planning to expand its cryptocurrency offerings in the coming months.

Blockchain Technology

The role of blockchain technology in cross-border payments has increased significantly in the last few months as financial institutions around the world have started developing efficient blockchain-based payment networks to cut costs and time. In November 2020, Australia tested paperless trade with Singapore through blockchain technology.

“By harnessing the benefits of blockchain and smart contracts technology, the Partior platform will address current points of friction. The open platform will enable banks around the world to provide real-time cross-border multi-currency payments, trade finance, foreign exchange and DVP securities settlements on a world-class platform, with programmability, immutability, traceability built into its suite of services,” Piyush Gupta, Chief Executive Officer of DBS Bank mentioned in the official press release.