JPMorgan Chase is making history with their Interbank Information Network (IIN) by having the most banks to join a live blockchain-based financial application.
Institutional investors are much more wary of cryptocurrencies than they are of blockchain technology. While JPMorgan Chase may not be enthusiastically hopping on the Bitcoin bandwagon just yet, they have undoubtedly jumped onto the blockchain train.
JPMorgan Embraces Blockchain
One of the many benefits that blockchain offers is that it allows more efficient and secure cross-border payments, which is probably exactly what JPMorgan envisaged when developing their Interbank Information Network (IIN) last year. According to Business Wire, the blockchain-based service will streamline the firm’s global payments process by drastically reducing delays associated with compliance and data-related issues.
Emma Loftus, who is the Head of Global Payments and Receivables for the firm’s Treasury Services, expressed her excitement, saying:
We saw tremendous interest among correspondent banks after the pilot launched in 2017, asking if they could join. We believe IIN will significantly improve the efficiency of cross-border payments, particularly as more banks participate and we evolve the functionality and use cases beyond compliance-related inquiries.
Blockchain Streamlining Cross-Border Payments
Banks definitely seem to be on board as evidenced by the fact that 76 banks from all over the world will be taking part in the IIN initiative. This comprises 19 banks in North and South America, 18 in Europe, 21 in the Asia-Pacific region, and 18 over Central and Eastern Europe, the Middle East, and Africa.
JPMorgan’s Global Head of Treasury Services, Takis Georgakopoulos, chatted about the firm’s goal of being market leaders by using blockchain technology, saying:
We’ve been actively exploring how emerging technologies such as blockchain, AI, and an enhanced digital experience can be deployed in our Treasury Services business to better serve our clients’ ever-changing needs. We will lead the market with the rollout of a robust pipeline of innovations over the coming months, beginning with the launch of IIN.
The firm’s Treasury Service is responsible for processing about 26 million transactions every day in 108 different currencies for over 100 countries. This equates to $3 trillion worth of transactions. By using blockchain to provide a positive customer experience, there’s no telling how much more that number can grow.
While the IIN is powered by the Ethereum network’s Quorum, France-based Tempo has chosen to go the Stellar blockchain route. Like JPMorgan, the money transfer company has also integrated distributed ledger technology (DLT) into its processes to make cross-border payments more efficient.
Do you think that more banks will want to be a part of JPMorgan’s IIN? Let us know in the comments below!
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