JPMorgan has filed a patent application to utilise blockchain technology to accelerate cross-border payments processes.
The application that was made public late last week was submitted in October last year.
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In the application, the JPMorgan abridged about a system which will utilise distributed ledgers to record payments within different banks using a peer-to-peer network.
In October, the bank also unveiled a new platform called Quorum that utilises similar technology for processing cross-border interbank payments.
The application further stated that every cross-border payment needs to go through multiple messages which are sent between the clearing authorities and bank associated with the transaction, thereby causing significant delays.
The usage of blockchain technology will facilitate the payment processing in real time as well as eliminate high costs.
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By GlobalDataIt also leaves a verifiable audit trail to identify the involved parties.
Accordingly, JPMorgan expects that Quorum can transform interbank payments business. It also formed a new alliance to test the new platform.
ANZ and Royal Bank of Canada’s Australian subsidiary are associated with this new alliance called Interbank Information Network (IIN).
The US-based bank is also mulling to segregate Quorum and introduce it as a spin-off business with a separate identity.
