Seven Major Banks to be Part of JPMorgan Blockchain Initiative

JPMorgan has given a big boost to its global transactions business by bringing in seven top Indian lenders such as ICICI Bank and Axis Bank to its blockchain platform that enables payments to reach beneficiaries faster with fewer steps in cross-border payments.

Named Interbank Information Network, the platform is the first live blockchain service by JPMorgan and represents the largest number of banks joining a live application of blockchain technology.

The seven banks include Yes Bank, Union Bank of India, Federal Bank of India and Canara Bank.

INN is aimed at providing secure exchange information to banks associated with cross-border payments. It reduces costs and mitigates risks involved in those cross-border transactions.

Banks frequently seek information from other banks for proper compliance decisions before executing cross-border payments.

Such type of information encompasses beneficiary name, address, and date of birth. Those inquires can take up to 2-16 days to complete, triggering delays in payments.

The platform, officially launched last year, got a fillip this year in India with several banks joining the network. The initial application on IIN caters to infrastructure for banks enabling them to exchange data related to compliance sanctions and AML inquiries. IIN’s vision is to eliminate unnecessary friction points in cross-border payments and define new models, services, and products in thee long-term, the bank said.

The bank aims to grow IIN with additional participants and services focused on allowing payments with speed, cost effectiveness and transparency.

Globally, over 330 banks including Deutsche Bank, Australia and New Zealand Banking Group have signed up for INN.

JP Morgan is global corporate and investment bank with $25 trillion of assets under custody and $458 billion in deposits.

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