JPMorgan, along with Royal Bank of Canada and Australia and New Zealand Banking Group Limited, announced Monday (Oct. 16) the launch of the Interbank Information Network (IIN).
In a press release, the banks said the new initiative uses blockchain technology to limit the friction in the global payments market. Using blockchain, the new payment network will be able to reach beneficiaries faster with fewer steps and enhanced security.
“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 for JPMorgan Treasury Services. “Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks.”
Processing global payments is typically a complex endeavor, the companies noted – but using blockchain technology, IIN will reduce the number of participants that have to respond to the compliance and data-related inquiries that can delay payments.
Royal Bank of Canada and Australia and New Zealand Banking Group Limited are the first two banks to join IIN, both with significant cross-border payment volumes. Other correspondent banks are expected to join in the coming months, JPMorgan said in the press release.
IIN is powered by Quorum, a permissioned-variant of the Ethereum blockchain, developed by JPMorgan. Quorum’s focus on privacy enables secure data sharing via IIN, it noted. According to the company, its Treasury Services business processes around $5 trillion in payments every day for clients in more than 100 countries, and has been investing in technology to enhance the client experience. A particular focus is on emerging technologies like blockchain, machine learning and robotics.
JPMorgan’s new blockchain payment network comes amid criticism from the company’s CEO about bitcoin, but not the blockchain technology that underpins it. In recent weeks, Jamie Dimon has called bitcoin a “fraud.” This comes as the cryptocurrency has hit more than $5,800.