A number of banks in Japan have expressed their willingness to join J.P. Morgan Chase’s Interbank Information Network (IIN), Bloomberg reported on 9 December.
According to the report, more than 80 banks in the land of the rising sun intend to join J.P. Morgan’s blockchain payment system, sometime in 2020.
It further states that the Japanese banks are looking to strengthen their anti-money laundering measures through the platform, as it offers more efficient and faster screening of cash recipients.
The IIN is based on J.P. Morgan’s blockchain platform Quorum, and aims to accelerate payment transactions, as well as help banks share data between each other.
The platform was designed with the idea of allowing banks to exchange data in real time, which lets them verify if a payment has been approved.
J.P. Morgan piloted the platform in 2017, and since then some of the world’s largest banks have joined the IIN, such as Germany’s Deutsche Bank.
Already, more than 360 members across the globe have signed up for IIN, and should all 80 Japanese banks join, they will comprise the largest group from any single nation.
IIN will not only reduce delays in the payments process, but will also allow its member banks to more easily collaborate with law enforcement agencies in money laundering cases, said Takashi Endo.
He is the treasury operations department officer at the Sumitomo Mitsui Trust Bank, which is one of the banks that signed a letter of intent to join the platform.
J.P. Morgan, one of the largest investment banks in the world, has actively explored and developed blockchain and crypto projects in the past years. In June, the company began trials of its own “JPM Coin” with several of its corporate customers. The coin was developed to speed up transactions, such as payments and bond transactions, between firms.
Last month, the company also helped the Monetary Authority of Singapore (MAS) to develop a blockchain-based multi-currency payment system. The prototype was designed to “provide interfaces for other blockchain networks to connect and integrate seamlessly”, as to enable payments denominated in different currencies to be completed on the same network.