JPMorgan, DBS Bank and Singapore government-owned investment company Temasek are teaming up to create a blockchain-based joint venture for payments, trade and settlement.
- The platform, to be dubbed “Partior,” will seek to disrupt the traditional payments model and the common pain points that come with it, according to an announcement Wednesday.
- Partior is intended to develop wholesale payments rails based on digitized commercial bank money, allowing instantaneous settlement between financial institutions.
- This, the venture partners said, will help to address the inefficiencies related to multiple validations of payment details by banks and other post-transaction handling and reconciliation activities.
- The platform will harness blockchain and smart contracts to enable banks worldwide to conduct real-time cross-border transactions starting with a focus on flows in USD and SGD between the two Singaporean companies and JPMorgan. The platform would then be expanded to other markets and currencies.
- JPMorgan has been offering a blockchain-based interbank payments system for several years used by over 400 financial institutions, including many of the world’s largest banks.
- The Wall Street behemoth has stressed its LIINK payments rails and JPM coin, now rebranded as onyxcoin (ONYX), are not meant to compete with the likes of SWIFT. Built on the Ethereum-based Quorum blockchain, JPMorgan seeks to deepen the networks cross border payments capabilities in the important and crypto-friendly trading hub of Singapore.