Deutsche Bank Joins J.P. Morgan’s Blockchain Network
- The Interbank Information Network is built on top of the Quorum network and will be using the JPM Coin.
- Deutsche Bank hopes to reduce the cost of processing difficult payments and drive the company towards ubiquity.
Deutsche Bank’s headquarters in Frankfurt, Germany on May 25, 2018. Vytautas Kielaitis/Shutterstock
Deutsche Bank, Germany’s largest bank, has become J.P. Morgan’s blockchain-based payment network’s latest member, the Financial Times reported on 15 September.
According to the report, Deutsche Bank has become the 320th member of the Interbank Information Network (IIN), which was launched as a pilot in 2017, and was developed on the Quorum network, which is J.P. Morgan’s Ethereum-based blockchain network. The IIN will be using the so called JPM Coin, and will have the goal of tackling the problem of inter-bank communication, which will speed up transactions.
According to Deutsche Bank’s Global Head of Cash Management, Ole Matthiessen, the use of IIN, which writes all payments data on a shared ledger, will allow the bank to reduce the cost of processing difficult payments.
Deutsche Bank will also be a valuable member of the IIN, as according to the report, most member banks use J.P. Morgan to process USD payments, while Deutsche Bank ranks first globally for clearing euro-denominated payments.
The Managing Director of Treasury Services at J.P. Morgan, Takis Georgakopoulos, said that the addition of Deutsche Bank “is going to help us drive towards ubiquity”. He also expressed his hopes that other major banks will follow suit after the German bank, and join IIN to expand its network. According to him J.P. Morgan plans to have 400 members of IIN by the end of 2019.
As previously reported, J.P. Morgan began trials of its “JPM Coin” in late June, with several of its corporate customers trying to speed up processes, such as payments and bond transactions between firms.
- Launched in 2020, the bank’s permissioned blockchain-based value transfer system, called JPM Coin, now handles around $1 billion in daily transactions.
- The bank’s global head of payments said they now plan to widen the usage of the coin, and possibly create a “more retail version” of the token.
The corporate sign in front of the JP Morgan Chase & Co office building on Park Avenue, New York City, October 29, 2016. Felix Lipov/Shutterstock
- Germany’s largest bank will use Taurus’ custody and tokenization technology to manage the cryptocurrencies, tokenized assets, and digital assets of its clients.
- Deutsche Bank was one of a few companies to participate in Taurus’ $65 million Series B fundraising round back in February, which was led by Credit Suisse.
- Coinbase has informed its customers that it will no longer provide support for Signature Bank’s Signet real-time payments network.
- The crypto exchange is now looking for an alternative payments network provider, while waiting for more clarity on the outcome of Signet.