The blockchain payment trial launched by JP Morgan in collaboration with Australia’s ANZ and the Royal Bank of Canada gets major banking institutions as participants. The interbank payments platform was launched by these three banks last year for faster cross-border payments. The payments platform touted Interbank Information Network (IIN) has been in the testing phase for 11 months. According to a Financial Times report, the platform has had over 75 banks signing up for the trial phase.
The banks that have signed up for IIN includes Societe Generale and Santander among others. The banking world is seeing a large influx of financial institutions preferring blockchain based transactions for faster, cheaper and secure payment methods. “Blockchain is a way to keep more of that [business] in-house,” according to Jason Goldberg, banks analyst at JP Morgan.
IIN is a payments platform build on the ethereum-based blockchain network called Quorum. The trial focuses on payments that show errors or get held up for compliance reasons. These problems usually require the all the parties involved in the transaction to find a solution. The new platform will allow banks to execute transactions worth $14,500 per day. This figure is the initial estimate and is expected to grow as new banks join the initiative.
“IIN will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays. Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks,” said Emma Loftus, head of global payments and foreign exchange for JP Morgan Treasury Services at the time.
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