Investment bank JPMorgan Chase plans to expand the capabilities of the current project on the blockchain in order to beat competitors TransferWise and Ripple. Interbank Information Network JPMorgan works with 220 banks worldwide. The system allows you to quickly identify errors in payments and violations of regulatory requirements.
Without the use of blockchain, many banks in the payment chain solve similar problems for weeks. The network was created in 2017 in collaboration with the Australian ANZ Bank and the Royal Bank of Canada. On the eve of the head of global clearing, JPMorgan noted the rapid development of IIN and the bank’s intention to "do more at the settlement stage."
According to him, JPMorgan has implemented the ability to verify the correctness of the addresses to which transactions are sent, in real time. In the current conditions, an error in one of the fields may lead to cancellation of the payment several days after it is sent.
JPMorgan believes that for this reason, the current banking system has gone far from the one that existed in the 80s and 90s. Also, from 5 to 20 percent of payments are not made due to errors or problems of legal compliance.
The new settlement system should be launched in the third quarter of this year. She will be able to work with both domestic and international payments.