JPMorgan to develop international blockchain platform

29.04.2021 |

JpMorgan will launch a blockchain platform for international transfers. Singapore-based DBC and investors from Temasek Group will also participate in the project. The new open payment system will be an industry solution in the market for interbank cross-border payments in foreign currencies.

The companies plan to digitize available funds in the accounts of commercial banks using DLT technology, which will help eliminate the problematic places of the current model of international payments, including the need to repeatedly verify the details of the sender of the payment.

The platform on a distributed ledger will enable settlements without time delays in carrying out any type of financial transactions. By eliminating a large number of intermediaries, each of which has to wait for confirmation of the transfer, the smart contract will eliminate these obstacles.

It is not planned to start the development from scratch. The three companies already have experience using blockchain technology in the creation of the Ubin multi-currency payment system, launched at the initiative of the monetary regulator from Singapore back in 2017.

In the first stage, the new development will be tested in the domestic interbank transfer market in Singapore. It will use the domestic currency and U.S. dollars.