September 25, 2018 10:31 PM
The Interbank Information Network, hosted on JP Morgan’s Ethereum-based Quorum blockchain, now has 75 participating global banks benefiting from better data sharing using blockchain technology.
On September 25, JP Morgan announced the expansion of its Interbank Information Network (IIN). Launched as a pilot in 2017, IIN’s original partners were the Australia and New Zealand Banking Group Limited and the Royal Bank of Canada. The IIN can now facilitate cross-border payments in Africa, Asia, Europe, Latin America, and the Middle East. Seventy-five banks total are now included in the network, including Allied Irish Bank, Commercial Bank of Africa, Credit Agricole, National Bank of Kenya, the National Bank of Kuwait, PKO Bank Polski, Santander, and many other household banking names.
Traditionally, the international payments system includes multiple layers of communication to verify and process transactions, especially if there is an issue or delay. Many transactions move through in-between or correspondent banks, especially outside of the US and the European Union. This means that when there is a problem, a bank sometimes queries multiple banks to find the information it needs, and this can be time consuming.
IIN is a platform for international, interbank information sharing powered by Quorum, JP Morgan’s permissioned Ethereum-based blockchain. IIN allows data to be securely recorded and shared on its blockchain. In this way, a bank’s query can be resolved simply by checking information stored on the blockchain, so the process of resolving issues between banks goes more quickly.
“IIN will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays,” stated Emma Loftus, head of global payments and receivables of JP Morgan Treasury Services, in the project’s 2017 press release.
Loftus said in Tuesday’s press release that JP Morgan “saw tremendous interest among correspondent banks after the pilot launched in 2017, asking if they could join.”
Back in March, JP Morgan was considering making the Quorum platform a separate company, though retaining a stake in the venture, in order to drive its adoption to wider markets. It appears that this has yet to happen.
Melanie Kramer is a freelance FinTech, blockchain, and cryptocurrency writer based between France and Canada. Melanie has studied, and retains an avid interest in, global politics, business, and economics.
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