The wall street giant is gradually becoming the flag bearer of the blockchain technology. JP Morgan Chase is expanding its Interbank Information Network (IIN), to attract the payment industry, as per the reports surfaced on 21st of April. IIN was first launched in 2017 as a pilot project for the benefit of the financial institution.
The report states JPM chase has knotted up with more than two hundred banks to share financial information on the blockchain. They have taken this step to save the cross-border reimbursement system for the banking system from Bitcoin, ripple and various other decentralized networks.
The plan is still under process to add the payment settlement feature to the IIN. The new feature will validate the transaction in actual time and will be routed to the valid account. It will also eliminate the chances of cancellation caused by wrong account number entry or any other error. The new system is expected to take off by the end of July this year.
Presently the functionality of IIN is limited to information sharing on the permission ledger. This is one of the reasons behind the payment delays. The banking institutions can now only resolve the compliance issue.
Presently 200 financial institutions around the world have joined the IIN network. IIN network is a permission version of Ethereum blockchain, Quorum.
The head of global clearing of JPM has said IIN is added with new features that will validate whether the payment is heading towards the valid bank or not. He also said that the first use case was for sanction screening, and now they are looking forward to doing more for the settlement.
JPM is putting effort to entice fintech firm to join its network through specially designed sandbox program. The firms will be provided with various tools for data modelling, secure massaging and file transfer.
At the beginning of the current year, a piece of news surfaced that JPM is building its native digital coin to increase the speed of cross border transactions. However, the bank has faced some criticism on the structure of the digital currency. The bank will be bringing up the virtual currency only for its major institutional customers.
As per the reports, JPM has recruited a considerable workforce for its blockchain development. Additionally, they have allocated a significant budget for new technologies, especially blockchain. Like JPM, few other banking giants are also allocating a reasonable budget for the development of blockchain.