More than 75 banks have signed up to be part of Interbank Information Network (IINSM), the first live blockchain service offered by J.P. Morgan.
Image: JPMorgan's blockchain technology now has more than 75 member banks. Photo: Courtesy of Markus Spiske/Unsplash.
JPMorgan launched this blockchain service as a pilot last year. By using blockchain technology, IIN is said to reduce the time correspondent banks take to respond to compliance and other data-related inquiries that can delay payments.
Powered by Quorum, IIN is a permissioned-variant of the Ethereum blockchain, developed by JPMorgan.
JPMorgan treasury services global head Takis Georgakopoulos said: “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 present expansion of network banks is expected to facilitate global cross-border payments across every major market including Latin America, Asia, Europe, the Middle East and Africa.
Last October, JPMorgan launched the IIN initiative and it was joined by Royal Bank of Canada and Australia and New Zealand Banking Group.
JPMorgan stated that processing global payments can be very complex. There are several layers of communication that can occur among payment participants to verify and process transactions.
With blockchain technology, IIN can reduce the number of participants that are needed to respond to compliance and other data-related inquiries that delay payments.
JPMorgan’s Treasury Services business processes nearly $5 trillion in payments every day for clients across 100 countries.
The bank has been investing in technology to improve end-to-end client experience, particularly in emerging technologies such as blockchain, machine learning and robotics. These are being deployed to improve platforms and to develop new products and solutions.