Breaking New Ground in Banking
OCBC Bank has officially made history as the first bank in Singapore to join the illustrious ranks of JPMorgan Chase’s interbank blockchain network, known as the Interbank Information Network (IIN). This significant move, reported by Business Times Singapore on September 20, marks a new chapter in the digitization of banking.
What’s Cooking in Asia-Pacific Banking?
With OCBC entering the fray, it brings the total number of banks participating in IIN to an impressive 134 across the Asia-Pacific region. OCBC’s stature as the second-largest bank in Southeast Asia by assets gives added weight to this partnership.
Understanding the IIN Landscape
Since its inception as a pilot project in 2017, IIN has grown exponentially. A total of 343 banks have enlisted since 2018, with Japan leading the charge, contributing a whopping 80 participating banks. This growth highlights the increasing adoption of blockchain technology in enhancing interbank transactions.
The Tech Behind the Magic
So, how does it all work? The IIN operates on JPMorgan’s very own Quorum blockchain, which is Ethereum-based and permissioned. This platform is specifically designed to streamline the cumbersome process of global payment data exchange, making transactions more efficient and less prone to friction.
JPMorgan’s Vision
John Hunter, global head of clearing at JPMorgan Chase, emphasized the network’s purpose, stating:
“The intent with IIN was always to develop a meaningful ecosystem of bank users, all focused on harnessing emerging technologies such as blockchain to better address the complex cross-border payments industry.”
The Network Grows Stronger
Just as OCBC steps into the fold, Deutsche Bank, Germany’s largest bank, also recently joined IIN. These additions are paving the way for a robust banking ecosystem that leverages advanced technologies.
Future Aspirations
JPMorgan has ambitious goals on the horizon, aiming to finalize 400 agreements with banks by the end of 2019. This ambitious target suggests that more major financial institutions are set to join the blockchain revolution, making the future of banking look increasingly decentralized and tech-savvy.
Not Just Blockchain: Enter JPMCoin
On top of the IIN and Quorum, JPMorgan has also gained attention for its blockchain-powered stablecoin, JPMCoin, launched in February. This coin represents another stride in how mainstream finance is adopting blockchain technology, ushering in new possibilities for secure and efficient transactions.
