American global bank JP Morgan has signed up 75 banks to its first live blockchain service that seeks to speed up global payments systems.
In the Philippines, tech-savvy Union Bank of the Philippines is the first to join JP Morgan’s expanded Interbank Information Network (IIN).
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 variant of the Ethereum blockchain developed by J.P. Morgan.
“We’ve been actively exploring how emerging technologies such as blockchain, AI (artificial intelligence), and an enhanced digital experience can be deployed in our treasury services business to better serve our clients’ ever changing needs,” Takis Georgakopoulos, global head of treasury services at JP Morgan, said in a press statement. “We will lead the market with the rollout of a robust pipeline of innovations over the coming months, beginning with the launch of IIN.”
Blockchain refers to a digitized and decentralized ledger that records all transactions in chronological order, providing central record-keeping—now mostly used to facilitate the exchange of digital assets like bitcoin or etherium—without having to use the traditional payments infrastructure.
“We saw tremendous interest among correspondent banks after the pilot launched in 2017, asking if they could join,” said Emma Loftus, head of global payments and receivables at JP Morgan treasury services. “We believe IIN will significantly improve the efficiency of cross-border payments, particularly as more banks participate and we evolve the functionality and use cases beyond compliance-related inquiries.”
With 75 participants, this is so far the largest number of banks to join a live application of blockchain technology.
The expanded network of banks will facilitate global crossborder payments in every major market, including Latin America, Asia, Europe, the Middle East and Africa.
In Asia-Pacific, other banks that have signed up for IIN are ANZ Group, BRAC Bank, China CITIC Bank International, China Guangfa Bank, Chong Hing Bank, Ho Chi Minh City Development JS Commercial, ICICI Bank, Indovina Bank Ltd., Joint Stock Commercial Bank for Investment and Development of Vietnam, KASIKORNBANK Public Co., KEB Hana Bank, Mizuho Bank Ltd., Prime Bank Ltd., PT Bank Central Asia, PT Bank CIMB Niaga, Resona Bank, Shinhan Bank, Sumitomo Mitsui Banking Corp, Vietnam Joint Stock Commercial Bank for Industry and Trade and Woori Bank. —DORIS DUMLAO-ABADILLA