Investment banking giant JPMorgan Chase (JPM) is planning to expand its use of blockchain technology to improve the banking industry’s payment system.
Formed in 2017 through a partnership between the Royal Bank of Canada and Australia’s ANZ Bank, the Interbank Information Network (IIN) allows more than 220 banks globally to share real-time data in the network. John Hunter, head of global clearing at JPMorgan, said with The Financial Times that the improvement will enable payments sent to a valid bank account to be verified instantly. Currently, transactions can be rejected days after they are sent due to any typo errors in sort code, the recipient’s account number and address.
“Banks straight-through processing rates are in the mid-80s to 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.”, he told the report. According to The Financial Times, this new feature will be up and running by this fall, facilitating both domestic and international payments.
The IIN has built on Ethereum-base – Quorum blockchain, which was launched as a pilot scheme in 2017, in an effort to provide marginal improvements impacted to trade finance.
Last February, the firm rolled out its own digital currency – JPM Coin for more profit settlement. Although Jamie Dimon – JPM’s CEO revealed the coin transformation to adapt customer requirements, some crypto insiders thought the coins “misses the point of crypto altogether”.