JP Morgan Expands Blockhain Payment Services to 220 Banks via Interbank Information Network

According to a recent report released by CoinDesk, the investment banking giant JP Morgan Chase aims at expanding its blockchain payment services to reach 220 banking members. The intention is to include settlement features and compete against companies such as Ripple.

JP Morgan Chase Expands Blockchain Services

At the moment, the blockchain Interbank Information Network (IIN), has closed a partnership with Australia’s bank ANZ and the Royal Bank of Canada. It allows 220 banking members to address payments that have errors or face problems that could take several weeks to be solved.

According to the Financial Times, Joh Hunter, the head of global clearing working at JP Morgan, explained that this banking network (IIN), is growing very fast and the bank is trying to do more at the

“point of settlement.”

On the matter, he commented during a conversation with the Financial Times:

“Banks straight through processing rates are in the mid-80s to mid-90s. It’s that gap – the 5 to 20 percent of payments – that have to be assesed by operations where we’re trying to alleviate some of that pain.”

The new feature that the firm is working with is expected to be live by the fall. Although the IIN is free to use, it could be using a subscription method over time.

JPM is also working in order for banks to develop applications in a sandbox in which they can get data, file transfers and more. The bank launched the IIN back in 2017 and it has been expanding its presence in the market over the last months.

Back in February this year, JP Morgan launched its own cryptocurrency called JPM Coin that would allow companies working with the firm to increase settlement efficiency. JP Morgan’s CEO, Jamie Dimon, explained that blockchain technology was going to be used to transfer dollars and not Bitcoin (BTC). He also mentioned that Bitcoin is a fraud and that governments will crash it.

One of the companies that is currently offering similar services to the ones that JP Morgan is now developing is Ripple. Ripple works with the XRP digital asset and it is already working with more than 200 financial companies around the world.