JPMorgan’s blockchain-based payments effort has included Deutsche Bank as its most recent member.
The addition brings the total number of banks registered for the Interbank Information Network (IIN) to 320, as indicated by a report from the Financial Times on September 15.
Introduced in October 2017, IIN is based on Quorum, the ethereum-based blockchain system created by the banking mogul, and utilizes a stablecoin named JPM Coin. JPMorgan stated at the time that the platform would slice the time and costs required when settling interbank payments delays.
IIN witnessed the beginning of remittance preliminaries with JPMorgan’s customer banks in June.
According to the FT report, most of the member banks use JPMorgan to process USD payments. Deutsche Bank, however, ranks number one worldwide for clearing of euro-denominated payments.
JPMorgan managing director of treasury administrations, Takis Georgakopoulos, told the paper that, since IIN would have “very big natural limitations” if IIN members were only drawn from the bank’s customer pool, the addition of Deutsche Bank “is going to help us drive towards ubiquity.”
IIN brings efficiencies by writing all of the information on payments on a shared ledger, therefore enabling risky installments to be settled rapidly and with less manual procedures, said Ole Matthiessen, worldwide head of cash management at Deutsche Bank.
With his bank having recently curtailed its investment banking business and now depending more on transaction banking, he said joining IIN is “an important step” that would decrease Deutsche’s expenses and furthermore enable it to provide improved services to clients.
Matthiessen further said that IIN’s plan to have 400 members before the year ends and that other major banking members are probably going to be revealed very soon.