JP Morgan is working on a blockchain payment platform
JP Morgan announced yesterday that it has collaborated with leading Singaporean bank DBS and investment company Temasek to develop a network that will transform the transfer of value between banks in the modern digital era.
The platform is being created for Partior, a recently founded technology company that seeks to use blockchain technologies to solve common issues in conventional cross-border payments that delay and cost money.
DBS Bank CEO Piyush Gupta said, “The existing ‘hub and spoke’ structure in global payments often causes delays since confirmations from multiple intermediaries are needed before a transaction can be considered final. This, in particular, has a knock-on impact and contributes to inefficiencies in resulting asset resolution. The Partior network would remove existing bottlenecks by using blockchain and smart contract technologies.”
Banks worldwide will use the network to provide real-time foreign exchange, trade financing, and Delivery Versus Payment (DVP) bond settlements, as well as cross-border multi-currency payments. Partior also intends to build infrastructure to allow instant payments through “atomic” transfers.
Takis Georgakopoulos, Global Head of Wholesale Payments at JP Morgan, added: “We agree that shared ledger technology, such as the Partior network, can change the way payments are cleared and settled by using this first-of-its-kind digitized commercial bank currency. We are excited about the launch of Partior after five years of collaboration with Project Ubin because it marks another breakthrough for JP Morgan and the industry: a blockchain-based wholesale payments infrastructure that delivers knowledge and value in a transparent way 24/7 will change hands globally “..
To reach the degree of adoption needed to transform the sector, Partior will actively invite all leading banks to enter the platform. The network will also help future Central Bank Digital Currencies projects and use cases (CBDCs).
Initially, the platform will concentrate on the transfer of securities in USD and SGD between Singapore-based banks. In the future, more markets and currencies will be added.
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