JPMorgan, DBS, and Temasek have joined together to create an open platform using blockchain technology that looks to resolve common payment issues.
In a recent press release, JPMorgan announced a partnership with financial giants DBS and Temasek. The partnership aims to introduce a blockchain platform to “reduce current frictions and latency for cross-border payments, trade transactions, and foreign exchange settlements.”
The project aims at being an open industry platform that will propel the current global payments space into a new era. The newly established technology company will be called Partior, meaning “to distribute and share” in Latin.
New era of bank payments
Using blockchain, Partior aims to transform the way traditional cross-border payments operate. Therefore, removing common pain points which include multiple validations on payment details by banks. This causes costly reconciliation activities.
The platform looks to be open to all banking institutions, and will allow banks and their clients to complete real-time transactions. Furthermore, Partior will also look at solving issues of processing global payments by implementing “atomic” settlements, or instant settlements, through the use of digitized commercial bank money.
Addressing current points of friction
Speaking on the partnership, CEO of DBS Bank, Piyush Gupta said that “by harnessing the benefits of blockchain and smart contracts technology, the Partior platform will address current points of friction,” and further added:
“The open platform will enable banks around the world to provide real-time cross-border multi-currency payments, trade finance, foreign exchange and DVP securities settlements on a world-class platform, with programmability, immutability, traceability built into its suite of services.”
JP Morgan global head of wholesale payments, Takis Georgakopoulos reiterated that JPMorgan is committed to being a leader as its clients “transition towards multiple bank platforms, decentralized networks, and programmable money.”
The company also has plans to accommodate central bank digital currency (CBDC) initiatives and use cases.
As BeInCrypto previously reported, JPMorgan also tested blockchain payments between Earth-orbiting satellites and found that digital devices can take advantage of the technology behind digital currencies for transactions.