Now, JP Morgan and Visa partner to develop blockchain-based money transfer systems
A network created explicitly for international transactions, Liink is provided by JPMorgan under its Onyx blockchain and payments effort. Institutions can share financial data and validate transactions using a platform provided by Onyx.
Similar to Liink, Visa’s B2B Connect was created for institutional usage and has now been linked with Onyx’s Confirm. Confirm is a product that validates account information and makes sure that parties to transactions supply accurate information and true identities. Confirm can authenticate more than 2 billion bank accounts from 3,500 financial institutions, according to Onyx.
The titan of the German financial industry, Deutsche Bank, has also agreed to join Confirm as a founding member. Confirm’s global head Alex Littleton stated in a public statement that network effects play a significant role in the company’s growth. He also said that adding Deutsche Bank as a founding member and creating interconnectivity with Visa B2B’s blockchain will expedite Confirm’s adoption on a global scale.
“Naming Deutsche Bank as a founding member, while also establishing interconnectivity to Visa B2 B’s blockchain, will accelerate our adoption on a global scale.”
In order to launch Confirm in 10 countries by the end of this year, J.P. Morgan is reportedly looking to enlist a number of founding member banks from around the world. The bank is reportedly planning a rollout in 30 nations for the following year.
The partnership between Visa and JPMorgan and its line of blockchain technologies appear to provide a substitute for the widely utilised Society for Worldwide Interbank Financial Telecommunications (SWIFT) messaging system to monitor and facilitate cross-border payments.
As reported by Todayq, SWIFT has been looking into the possibility of creating a cryptocurrency-based money transfer service. The global financial messaging service is collaborating with Chainlink on a “proof-of-concept” project that makes use of Chainlink’s Cross-Chain Interoperability Protocol (CCIP). It allows SWIFT to carry out token transfers between blockchains (almost all of them).
Through this programme, SWIFT-affiliated banks will be able to equip themselves with blockchain features without having to integrate, replace, or develop new systems. If the arrangement is fruitful, banks will save a tonne of money.