Weeks after experimenting with blockchain-based payments between satellites in space to see if two machines could transact autonomously, investment bank JPMorgan is now using blockchain technology to improve money transfers between. banking institutions around the world. JPMorgan has now launched a new solution called Confirm to help reduce the number of “rejected or returned transactions caused by inconsistent payment details,” according to the investment bank. As a result, the solution will lead to lower costs for both issuing and receiving banks.
“JPMorgan’s entry into the blockchain will help a lot on the institutional side of remittances. It seeks to resolve the clearing and settlement issue that occurs in bank-to-bank transfers and takes several days to resolve. With blockchain, JPMorgan and banks will be able to settle it 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 account information validation application on JPMorgan’s blockchain network through which partner banking institutions, according to the company, will be able to request confirmation of beneficiary account information and receive responses directly from other participating banks receiving the requests. in near-real-time. Once the information is validated, payment can be sent through JPMorgan PayDirect’s clearing solution to route the payment. The investment bank is working with 12 Taiwanese banks to test the use of blockchain technology to improve global remittances. JPMorgan partnered in February this year, according to a press report, with the State Bank of India to speed up clients’ overseas transactions using the bank’s blockchain technology.
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Last month, Visa announced the use of the cryptocurrency USD Coin – a stable coin, which means its value is directly tied to the US dollar – to settle transactions on its payment network on a pilot basis. Besides Visa, institutions and entrepreneurs such as Mastercard, BlackRock, PayPal, Square, Tesla’s Elon Musk, Jack Dorsey, and many more have engaged or tried cryptocurrencies. PayPal also announced last month that its U.S. customers would be able to convert their Bitcoin, Ethereum, Litecoin, or Bitcoin Cash into U.S. dollars to complete the transaction.