Banking giant, JP Morgan brought about a game changing move when it announced that it onboarded nearly seven Indian banks to its blockchain platform in order to facilitate faster cross-border payments to its beneficiaries.
News portal Economic Times, reported that the blockchain platform which has been named as Interbank Information Network (IIN), is the first live blockchain service by JP Morgan and reportedly represents the largest number of banks to join a live application of blockchain technology. Among the seven banks, eminent ones such as ICICI bank, Axis bank, Yes Bank, Canara bank, Union bank are some of the new names.
Madhav Kalyan, who is the Chief Executive Officer (CEO) of JP Morgan Chase India said, “We are encouraged by the huge interest from the seven major banks in India to join our IIN initiative. As we look to address the challenges banks face in cross-border payments pertaining to friction points caused by multiple hops through the payment chain when further information is required.”
Kalyan added, “With IIN, the time taken to resolve these inquiries can be reduced from up to 16 days to mere hours.” The news portal reported that conventionally cross-border payments take a longer time and IIN will aim to provide, reliable, secure exchange of information which will cut down on time consumption.
JP Morgan was last in the news when we reported that the bank was expected to begin pilot testing of JPM Coin later this year. According to a Bloomberg report, the bank was seeing interest from its customers in US, Europe and Japan for the potential of its digital coin to speed up trading services.
At the time, Umar Farooq, head of digital treasury services and blockchain, had told Bloomberg that JPM Coin could facilitate instant delivery of bonds over the blockchain. According to Umar, JPM Coin would allow traders to instantly deliver the securities in exchange for cash.
While this is encouraging, verdict is still out on Bankchain, the ambitious blockchain project which was completely indigenous.
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