JPMorgan, DBS and Temasek to build blockchain platform for interbank payments

The financial group JPMorgan, Singapore’s largest bank DBS, and the investment company Temasek announced plans to develop an open, industry-wide blockchain-based platform for interbank payments, trading and settlement in foreign currencies.

According to the press release, the Partior solution will digitise the funds of commercial banks and use distributed ledger technology to remove pain points in the current cross-border payments model, including banks’ requirement for multiple verifications of beneficiary details.

The platform is also intended to develop channels for wholesale payments to deliver instant settlement across a range of financial transactions.

“The current radial model in global payments often leads to delays, because for settlements to be considered final, confirmations from various intermediaries are required. This, in turn, reduces the efficiency of settlements for other assets. By leveraging the advantages of blockchain technology and smart contracts, Partior will address the existing issues”, said Piyush Gupta, CEO of DBS Bank.

The platform is planned to initially focus on boosting the efficiency of flows between Singapore banks in both the local currency and the US dollar. In time, the platform intends to broaden its service offering to other markets.

Partior will also consider CBDC use cases.

As reported in 2020 JPMorgan sold its blockchain platform Quorum to ConsenSys, but said that its team would remain within the group to work on other projects.

Subsequently, JPMorgan created a new blockchain division Onyx with a staff of more than 100, and in March this year opened 56 positions related to DLT technology.

Subscribe to ForkLog news on VK!