Investment bank JPMorgan Chase plans to expand the capabilities of its current blockchain-based project to bypass such competitors in the field of payment solutions such as TransferWise and Ripple.
The Interbank Information Network (IIN), created in collaboration with the Australian ANZ Bank and Royal Bank of Canada in 2017, now allows 220 banking organizations to quickly identify payment errors and regulatory violations. Without the use of the blockchain and subject to the presence of several banks in the payment chain, the solution of such problems may take weeks.
As reported by the Financial Times this Monday, head of global clearing at JPMorgan, John Hunter, noted the rapid development of IIN and the bank’s intention to “do more at the settlement stage.”
According to him, JPMorgan has implemented the ability to verify the correctness of the addresses to which transactions are sent, in real time. In the current conditions, an error in one of the fields may lead to cancellation of the payment several days after it is sent.
Hunter believes that for this reason, the current banking system has gone far from the one that existed in the 80s and 90s. He also stressed that from 5 to 20 percent of payments do not pass due to errors or problems of legal compliance.
According to the Financial Times, the new settlement system will be commissioned in the third quarter of this year and will be able to work with both domestic and international payments.
IIN is based on the Quorum blockchain, which is a private version of Ethereum, шit has been developed by the bank since 2016. The platform is also used in the acclaimed digital currency JPM Coin, the details of which were presented in February of this year.