Weeks after experimenting with blockchain-based payments between satellites in space to see if two machines can act autonomously, investment bank JPMorgan is now using blockchain technology to improve the transfer of funds between banking institutions around the world. JPMorgan has now launched a new solution called “Confirm” to reduce the number of “declined or returned transactions caused by mismatched payment details,” according to the investment bank. As a result, the solution leads to a cost reduction for both the sending and the receiving bank.
“JPMorgan’s entry into the blockchain will be very helpful on the institutional side with money transfers. Attempts are made to solve the clearing and settlement problem that occurs with bank-to-bank transfers and takes several days to process. With blockchain, JPMorgan and banks can do this in near real time, ”Ashish Agarwal, blockchain expert and founder of PayO – Neo-Banking Platform for SMEs – told Financial Express Online.
Confirm is a global application for validating account information in JPMorgan’s blockchain network, through which partner banking institutions, according to the company, can request confirmation of the recipient’s account information and receive responses directly from other participating banks, who receive the inquiries almost in real life. Time. Once the information is validated, the payment can be sent through JPMorgan’s PayDirect clearing solution to forward the payment. The investment bank is working with 12 Taiwanese banks to test the use of blockchain technology to improve global money transfer. JPMorgan had partnered with State Bank of India to use the bank’s blockchain technology to accelerate overseas transactions for customers, according to a news report in February this year.
Also read: Zohos Sridhar Vembu gives SMEs a growth mantra; suggests entrepreneurs focus on rural India
Last month, Visa announced the use of the cryptocurrency USD Coin – a stable coin, meaning the value of which is directly tied to the US dollar – to process transactions on its payment network on a pilot basis. Aside from Visa, institutions and entrepreneurs such as Mastercard, BlackRock, PayPal, Square, Elon Musk from Tesla, Jack Dorsey and others have dealt with or dealt with cryptocurrencies. PayPal also announced last month that its US customers could convert their Bitcoin, Ethereum, Litecoin or Bitcoin cash to US dollars to complete the transaction.