JP Morgan’s blockchain based Interbank Information Network (IIN) has now expanded to 75 banks as the firm fights off startups like Ripple to control the payments segment. Santander and Sociètè Gènèrale are among the banks which have been roped into the scheme according to a report in Financial Times.
The system allows banks to share information and solve problematic transactions within a short time. Under the current systems in use, this can take several days and even weeks.
Ripple has been threatening to take over this important sector with its cross-border payments solution which also employs the blockchain technology.
According to the report, JP Morgan is determined to keep payments in-house and blockchain provides this possibility.
“Payment is one of the segments banks worry most about in terms of ceding to non-bank competition,” Jason Goldberg an analyst with JP Morgan told Financial Times.
Interbank Information Network (IIN), JP Morgan’s platform which is built on the back of Ethereum, is based on Quorum.
Banks can now transact up to $14,500 denominated payments per day over IIN, but this figure is set to go up as more banks join in. There are also plans to add other fiat currencies other than USD on the platform according to the FT report.