JPMorgan has bolstered its blockchain payment system to include 75 banks across several countries. The network, which is built on JPMorgan’s blockchain platform dubbed Quorum, aims to accelerate cross-border bank transfers, competing with other banks and the likes of blockchain startup Ripple.
Lenders such as Santander and Société Générale are testing the Interbank Information Network (IIN), which JPMorgan developed on its internal blockchain system Quorum last October. Business Insider describes IIN as a “shared ledger for cross-border payments,” enabling banks to quickly add or correct information as needed for bank payments.
JPMorgan CFO Marianne Lake described the potential to Business Insider in March, saying:
“One of the most costly and time-consuming elements of cross-border payment transactions today is the need for the involved banks to research and respond to forms of compliance with each other. Today, payments that have compliance issues can be delayed by up to two weeks, but this technology can reduce this to minutes.”
Drawing the Line
JPMorgan is one of the main proponents of blockchain technology in the traditional financial system. The firm, however, views the cryptocurrencies as a threat to the economic structure. JPMorgan CEO Jamie Dimon infamously called bitcoin a “fraud.”
And since February, JPMorgan customers cannot purchase cryptocurrencies with a JPMorgan-issued credit card.
Other Wall Street firms have been more open to crypto. In December 2017, for example, Goldman Sachs, the second largest investment bank in the world, behind only JPMorgan, announced that it would start selling futures contracts whose value is based on bitcoin’s price.