JPMorgan, the acclaimed and one of the esteemed Wall Street firms have made plans in saving the banking industry. The firm is undergoing utilization of the leading blockchain technology of the respective industry. In turn, this venture by JPMorgan will smoothen the payment system of the banking sector. Judging by the advancement, the investment will invite the experts in fintech to make experimentation on curating the platform.
The conventional banking industry has a dire need of the borderless payment that blockchain and cryptocurrency such as Bitcoin offers. Similarly, cryptocurrency network such as Litecoin, Ethereum, TransferWise and Ripple are some of the notable cross-border transfer platforms. Only, TransferWise and Ripple are notable the fintech firms which offers stablecoins.
According to the revelation by Financial Time, the planning has already begun for adding payments settlement feature to the IIN. IIN stands for the Interbank Information Network; besides, it is an inspecting blockchain network. By the looks of it, the feature is going to allow the payments to take place in real time. On the contrary, the IIN will also play a crucial role in verifying the payments in real time.
The new process of validating and verifying the transactions and payments will eliminate the transaction’s cancellation along with delays. Most of the time the transactions do not take place due to the error in the network. With an addition to this, there are times when payments go into wrong accounts due to an error in the account number. JPMorgan said that the new payment and validating system would go live by 2019 July.
IIN is just a tool to share information
As of now, the use cases of IIN are explicitly for sharing the information among different banks. The banks will share a mutual ledger which will be accessible by multiple parties. Eventually, this will help the Financial institutions to lead the delays in payments.
According to the sources, more than 200 banks are so far becoming a part of the network of IIN blockchain. Quorum, the permission blockchain variant by Ethereum powers Interbank Information Network.
With an addition to this, JPMorgan is excruciatingly keen to enhance the applications development for Interbank Information Network. Eventually, the wall street firm will introduce a sandbox development environment which will offer different fintech firms to build blocks.
The fintech firms can also curate numerous tools on the network. The building blocks and tools will include data modelling, secure messaging and transfer of document files. Everything sounds so easy and convenient.
JPMorgan wants to protect the business of payment from Crypto payments
JPMorgan is also going to step into the world of cryptocurrency after announcing the JPM Coin, a stable cryptocurrency. The integrations of blockchain into the JPMorgan suggests that cryptocurrency is the next stage of finance. Once cryptocurrency payments become mainstream JPMorgan cannot seek commissions from the money transfers taking place in its network.
In the present time, the business records of wholesale of JPMorgan suggests that the firm makes $6 trillion every day. And this comes from the money transfer business. Additionally, JPMorgan is making huge investments in new technologies such as blockchain.