JP Morgan announces hundreds of new recruits to blockchain network

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Daniel Webber
Daniel Webber
Founder & CEO
Daniel is Founder and CEO of FXcompared and has 18 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely… Read more
  • JP Morgan’s “permissioned-variant” Ethereum-powered blockchain network is now used by hundreds of banks to improve payment processing times across borders, it says
  • Banks in the UK, Australia and further afield are now involved in the process
  • “In just one year, we’ve seen IIN scale as well as expand in terms of role and capabilities – and we are excited at the growth to come”, said a JP Morgan spokesperson

Major banking name JP Morgan has announced that over 300 banks have joined its so-called Interbank Information Network.

The Network, or IIN, is designed to help companies use blockchain to navigate the complexities of cross border payments.

In a sign of the legitimacy that a big brand name like JP Morgan can lend to concepts like blockchain, 330 banks have now joined the network over the course of the last year.

These include other well-known names such as Deutsche Bank.

Other names on the list include UK brands such as Nationwide Building Society, Australia and New Zealand Banking Group Limited (otherwise known as ANZ), and Credicorp Bank.

The main aim of the new system is to ensure that banks have a way to quickly confirm payment approvals and allow those on each of the end of the blockchain transaction to send or receive more quickly.

Currently, traditional banks are now always speedy when doing this.

The system works along the lines of the Ethereum blockchain and is powered by a JP Morgan system called Quorum.

Quorum is what is known as a “permissioned-variant” version of the Ethereum blockchain, and it has been developed in-house by the bank.

It also helps banks to swap information about customers and transactions more easily in order to enable the process – something known as improving “interbank information–sharing”.

According to a spokesperson for JPMorgan Chase, global head of clearing for JPMorgan Chase John Hunt, the new developments mean the company is “excited at the growth to come”.

“The intent with IIN was always to develop a meaningful ecosystem of bank users, all focused on harnessing emerging technologies such as blockchain to better address the complex cross border payments industry”, he said.

“In just one year, we’ve seen IIN scale as well as expand in terms of role and capabilities – and we are excited at the growth to come”, he added.

Earlier, another spokesperson said that the network has “transformed their interaction” when it comes to banks.

"Historically, correspondent banks communicate one-way, bank-to-bank, but we have transformed their interaction", said Suresh Shetty, who is the blockchain technology lead for network.

"When a payment detail is flagged for confirmation, different parties can interact simultaneously, requesting and sharing information."

The project has been on the cards for a number of years, and it was first launched in an experimental phase two years ago.

Innovations like blockchain are gathering pace in the online money transfer world.

Don’t let yourself get left behind: keep up to date by checking out the latest on our news pages.


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