JPMorgan Launches Blockchain-Based Validation Solution for Financial Institutions
Banking giant JPMorgan has revealed the launch of a blockchain solution that will reduce the number of failed transfers within its payment system. This development was announced on Monday, with the bank confirming that the solution named ‘’Confirm’’ is in its testing phase.
Faster Transaction Confirmation
Twelve banks in Taiwan, including top banks like Taiwan Cooperative Bank and CTBC, have signed up for the testing phase. The banks will test the solution by initiating money transfers to Indonesia using the JPMorgan clearing solution PayDirect.
According to JPMorgan, Confirm validates payments using blockchain technology. Banks can request validation of an account prior to initiating payment and also respond to requests for account owners in real-time. This will ensure faster confirmation of cross-border transactions from partner banks while also reducing operating costs.
The solution also reduces fraudulent activities by pre-validating account information, so banks know beforehand if the beneficiary matches the owner of the account they are to deposit funds.
JPMorgan also expects that the solution will improve transfers within Taiwanese banks and reduce failed payments.
JPMorgan Continues to Expand Blockchain Products
JPMorgan is regarded as one of the few traditional institutions that have emphasized developing blockchain solutions.
The bank has developed its blockchain network called Liink that is used by banks globally. Liink is a p2p network that reduces the risk associated with cross-border transactions and helps users carry secure data transfers.
Several banks have already joined JP Morgan’s blockchain consortium, including the Overseas Chinese Banking Corporation (OCBC) and the State Bank of India (SBI).
BTCManager also revealed in March that the bank was considering exploring bitcoin and cryptocurrency Clearinghouse options. The report stated that the bank was contemplating offering a middleman service between OTC desks and traders to guarantee the enforcement of trade and create adequate liquidity in the market.
Blockchain Adoption on the Rise
This development only goes to show the rising adoption of blockchain solutions in the financial sector. The unique features of blockchain technology offering secured and faster transaction times have steadily penetrated the rigid traditional finance sector.
It is understood that more financial service providers are opened to integrating blockchain technology to improve their existing systems.