The ingenious Ethereum blockchain payment initiative launched recently through a joint effort of three banks led by JP Morgan has been able to woo 75 new banks across the globe to benefit from the seamless and faster interbank settlements.
Though JPMorgan has already deployed this technology since October last year but the Interbank Information Network started as an experiment developed by JP Morgan and a development studio EthLab.
The New Payment Platform Adds More Banks to Trial
It was earlier reported that JPMorgan’s blockchain voyage of discovery hit a solid ground in 2016 and the company’s CIO, Lori Beer, recently claimed that blockchain would substitute pre -existing technologies. Then the largest bank in the US appears to back out the banking-centric blockchain consortium R3 the following year, presumably to develop its own in-house platform.
The project then took a different turn with the inclusion of the Royal Bank of Canada and Australia, and New Zealand Banking Group (ANZ) as a trio of members, this union is now gaining more competitive strength to share the market with R3 by adding more than 75 of the world largest banks.
The specific target of the trial is to test the practicability of a common ledger which will be open to all participating banks in a bid to reduce the number of users in a simple cross-border payment network.
The Ethereum-Based Payment
The blockchain-based payment is a solution addressed to the payment and a financial sector where conventional commercial banks are exposed to the risk of disruption the most from fintech establishment. Jason Goldberg, JPMorgan bank analyst stated that;
“Payment is one of the segments banks worry about most about in terms of ceding to non-bank competition. Blockchain is a way to keep more of that [business] in-house.”
Reports from JP Morgan categorically stated that the Interbank Information Network allows for peer-to-peer financial messaging which bestowed upon it some sort of competitive capability to rival with the most popular global payments networks operated by SWIFT. With the addition of 75 banks, the network was able to process up to 14,500 USD-denominated payments daily.