Blockchain gains traction in fintech as payment networks emerge

J.P. Morgan has created what is arguably one of the largest blockchain payments networks to date.

The financial services company announced that the Royal Bank of Canada and Australia and New Zealand Banking Group Ltd. are the first two banks to join the blockchain network, “representing significant cross-border payment volumes.”

J.P. Morgan created the Interbank Information Network (IIN), which it said will significantly reduce the number of participants needed to respond to compliance and other data-related inquiries that delay payments.

“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, J.P. Morgan Treasury Services. “Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks.”

Other banks are expected to join the IIN in the coming months, J.P. Morgan said.

The IIN unveiling came after a Polynesian payments system provider and IBM unveiled their own cross-border blockchain payments service. That FinTech network was  heralded as being able to improve efficiency and reduce the cost of making global payments for business and consumers.

IBM’s Blockchain Platform, a cloud service, was used to enable the electronic exchange of 12 different currencies across Pacific Islands as well as Australia, New Zealand and the United Kingdom.

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Source: Blockchain gains traction in fintech as payment networks emerge – CIO