International investment bank and financial service provider JP Morgan Chase have announced the enrollment of 75 new banks on their new and growing blockchain payment platform. The platform is a part of a collaboration between JP Morgan, ANZ and the Royal Bank of Canada.
The first trial on the platform was established in October 2017 and has been designed to utilize the blockchain to create a fast and flawless interbank payment system that still uses traditional banking currencies and methods. The idea is to take the framework for traditional interbank payments and to place it directly onto the blockchain.
So no, JP Morgan aren’t building their own cryptocurrency just yet.
What is the JP Morgan Chase platform?
Also known as the Interbank Information Network (IIN). IIN is built on Quorum, an Ethereum based application, therefore IIN is a part of the Ethereum blockchain.
Which banks have joined the platform?
We don’t have a complete list just yet, however we know that Santander and Society General are two of the banks that have already confirmed an enrollment onto IIN. Many believe that the main motivation for the 75 banks joining this, is to help bolster interbanking relations. At the moment, banks are seeing increased competition from non-banks and other financial service providers that can offer all of the same services as banks, but in a more decentralized format (thanks to the blockchain). Because of this, systems like IIN may prove to be priceless when banks start to improve their own banking technologies, which is something they need to do if they want to extinguish their exciting new competitors.
IIN currently allows for transactions of up to $14,500.00 per day to be made in USD, though with more international banks now on board we expect this limit to be raised and we expect that soon enough, additional FIAT currencies will be added.