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.