200 Banks added to Interbank Information Network
JP Morgan, the most significant financial firm on Wall Street has revealed that they will be expanding their Interbank Information Network. The expansion will come in the form of new blockchain technologies that will hone in on payment. This information came from the Financial Times.
The Financial Times report detailed that 200 banks have partnered up with JP Morgan and opted to share their financial data over to the financial firm. Subsequently, the expansion to IIN will allow for blockchain brokers to trade with two hundred separate banks.
JP Moran, back in October of 2017, partnered with the Royal Bank of Canada and the ANZ Bank of Australia to build an interactive blockchain-based program that allowed for interbank payment transfers of cryptocurrency. The Interbank Information Network is a subsidiary of the Quorum & JP Morgan owned Etheruem-platform.
This announcement comes as a threatening blow to current leaders in this industry. Currently, it’s unknown what Ripple, Revolut or TransferWise will do as a comeback to the Financial Times report.
John Hunter, the Head of Global Clearing at JP Morgan commented to Financial Times, stating: “The initial use case was around sanctions screening. Now we’re looking at the ability to do more at the point of settlement. Banks straight-through processing rates are in the mid-80s to the mid-90s. It’s that gap — the 5 to 20 percent of payments — that have to be assessed by operations where we’re trying to alleviate some of that pain.”
During this report, it was also revealed that there’d be a new feature that guarantee’s transactions are completed and sent to valid accounts in real time. That’ll solve the problem of payment rejection due to a series of issues like account numbers or sort codes.
The JP Morgan Crypto Coin
It was also revealed earlier this year that this Wall Street giant is creating their digital currency. This currency will benefit JP Morgan by increasing its efficiency with blockchain settlements. However, there are some blockchain analysts that lack faith in the JPM Coin and that restrictions will apply due to countless reasons.