JPMorgan Quorum Blockchain Trial Interbank Information Network (IIN) Adds 75 New Banks
JPMorgan Expands Blockchain Payments Trial Interbank Information Network
Almost a year ago, JP Morgan announced a new blockchain correspondent banking network. Initially, the partners in the Interbank Information Network (IIN) were Royal Bank of Canada and ANZ. Today, JP Morgan announced that more than 75 banks have signed up to be part of IIN, the largest number of banks to join a live application of blockchain technology.
IIN launched as a pilot in 2017, minimizes friction in the global payments process, enabling payments to reach beneficiaries faster and with fewer steps. Using blockchain technology, IIN reduces the time correspondent banks currently spend responding to compliance and other data-related inquiries that delay payments. IIN is powered by Quorum, a permissioned variant of the Ethereum blockchain, developed by J.P Morgan.
In essence, it is a shared ledger for cross-border payments that allows banks to quickly and easily add or correct information necessary for payments sent between banks. It competes with legacy platforms such as SWIFT and new startups like Ripple.
Richard Chambers, COO of blockchain investment platform InvestX and former director at Royal Bank of Scotland’s Corporate Transactions Team, commented on the news:
“JP Morgan’s Interbank Information Network is one example where the banks are using blockchain technology to even the playing field versus fintech startups such as TransferWise which has a lower cost base. Despite popular opinion, large banks have been looking at blockchain for years for various use-cases across payments, settlements, and issuance.”
International payment is an area where fintechs have made reasonable dents in the banking sector. Especially UK -based unicorn Transferwise which processes £3 billion a month and last year earned revenue of £117 million. The World Bank estimates the global cost of remittance averages 7.13% of the money transferred.