. JPMorgan this time adding Japan to its Blockchain roster.
JPMorgan Chase & Co. the world’s 6th largest bank in terms of total assets escalating its blockchain-powered payments platform IIN in Japan by 2020.
Bloomberg on its Dec 10 report mentioned that the American multinational investment bank’s Interbank Information Network (IIN) which is based on Quorum (Ethereum based JPMorgan in-house open-chain blockchain platform) is expanding to Japan at the beginning of next year, majorly to cease money laundering concerns and to accelerate payment transaction processes which are among others the most prominent issues in the banks of Japan.
It is noted that there is a probability of more than 80 Japanese banks who are interested to join Interbank Information Network (IIN). The platform which was initially launched as a pilot in 2017 by JPMorgan, has now become one of the most productive platforms in demand.
JPMorgan’s executive director, Daizaburo Sanai, said that there are more than 360 lenders on the network worldwide and Japan is the single country from which the U.S firm has got the most number of entries.
A Move to Make Japan Compliance Fulfilled
Bloomberg’s report indicated that since 2014, Japan is constantly facing the compliance pressure to bolster its money laundering & terrorism financing concerns under the Financial Action Task Force behest. To strengthen the prevailing and forthcoming issues in Japan the step to join IIN is indeed important.
Banks in Japan have been under pressure to strengthen steps to prevent money laundering and terrorism financing since the Financial Action Task Force found deficiencies in the country in 2014. The Paris-based organization finished its latest on-site inspection of Japan in November and plans to announce the result next year, a finance ministry official said.
Sanai mentioned that IIN is operating in 70 banks of the United States, Europe, and Asia. This time Japanese banks have shown their intent to strengthen their internal banking systems.
In September, Frankfurt-based Germany’s largest bank, Deutsche Bank and the world’s biggest clearer of euro payments has subscribed IIN, to offer better client services, to reduce the cost of difficult payments processing routine, and to speed up the cross-border payments. In the same month, Singapore’s OCBC also joined the force of IIN. OCBC is the second largest bank in Southeast Asia by assets and represents amongst the larger banks in the Asia-Pacific region.
The Interbank Information Network
IIN is a scalable, peer-to-peer network which is a free service payments platform (at present) that allows immediate inquiries on remittance account information besides being able to discover international remittances of anti-social forces, smartly and quickly. With this tool implementation, the tracking of cash recipients can become “faster and more efficient” because it has the potential to swiftly resolve compliance issues that can delay payments by weeks.
JPMorgan’s head of global clearing, John Hunter, said, “The more banks that join the network, the more dramatic the reduction in payment delays.”Source: Bloomberg Report
JPMorgan JPM Coin
KoinPost earlier reported about JPMorgan’s crypto-related initiative labelled as JPM Coin stablecoin which would run on its in-house Quorum blockchain network. The information related to the JPM Coin project was disclosed in mid-Feb this year and is allegedly expected to launch at the end of 2019.
According to JP Morgan’s head of digital treasury services and blockchain, Umar Farooq, “The clients would trial the technology with the definitive aspiration of pacing up transactions.”Source: Bloomberg Report
Notably, the coin would also be deployed for payments between firms and bond transactions.
Bloomberg mentioned, in an interview in Tokyo, Farooq told, JPM Coin could enable “instant” delivery of bonds on a blockchain platform.”
On Nov 14, in a press release, the recent development came out about JPMorgan’s collaboration with a California-based Baton Systems to empower derivative margin payments structure, as an industry solution to speed-up cash & collateral transfers to global clearinghouses. Baton system is a fintech firm and a distributed ledger technology-based post-trade solutions provider for capital markets.
The release claims that this new initiative would provide the real-time arrangement of cash and collateral transfer without dismantling the technology infrastructure