JP Morgan, one of the largest financial institutions in the world has embraced blockchain technology. According to some reports, the Interbank Information Network (IIN) – the bank’s blockchain project – is scaling without any problems.
As per the Financial Times, the blockchain-based payment system that is being developed by the multinational bank has successfully tested its project. The company is expecting the system to reach 300,000 transactions per day. To put it into comparison, the SWIFT payment system currently manages 14.5 million cross-border transactions a day.
At the time, the network has more than seventy participants and, in the future, the company could reach even more companies. If there are more interested partners using the network, the number of transactions can continue growing.
David Treat, head of Accenture’s capital markets blockchain practice, said that what the company is doing is a big deal.
“Certainly from a size of ecosystem perspective and starting to do something in production, having [so many] banks [participate in IIN] and some of the world’s biggest banks is a big deal.”
The multinational financial institutions will work in order to tackle the growing competition of other fintechs in the market such as Revolut. At the same time, there are other companies such as Ripple or Stellar that are also developing their own cross-border payment systems and are already working with hundreds of partners.
Umar Farooq, head of blockchain at JP Morgan, said that blockchain is a great technology but he is not sure about the potential that the technology has to save important sums of money. Moreover, he explained that the technology would allow companies to experiment with it and create new products rather than as a money saving mechanism.
JP Morgan unveiled its product back in October 2017. At that time, the company did that with two other participants, including the Royal Bank of Canada and Australia and New Zealand Banking Group Limited. After being developed for over a year, there are more than seventy different institutions already working with it. Some of the banks working with JP Morgan are Société Générale and the National Bank of Canada, among others.