J.P. Morgan said Monday it has launched a new payments processing network based on blockchain technology. The financial services firm is partnering with Royal Bank of Canada and Australia and New Zealand Banking Group Limited on the Interbank Information Network (IIN).
“IIN will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays,” said Emma Loftus, Head of Global Payments and FX, J.P. Morgan Treasury Services. “Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks.”
Processing global payments is very complex. Multiple layers of communication occur amongst payment participants to verify and process transactions. By leveraging blockchain technology, IIN will significantly reduce the number of participants currently needed to respond to compliance and other data-related inquiries that delay payments, according to JP Morgan.
Royal Bank of Canada and Australia and New Zealand Banking Group Limited are the first two banks to join IIN, representing significant cross-border payment volumes. Other correspondent banks are expected to join in the coming months, according to J.P. Morgan.
IIN is powered by QuorumTM, a permissioned-variant of the Ethereum blockchain, developed by J.P. Morgan. Quorum’s focus on privacy enables secure data sharing via IIN.