JPMorgan Launches Interbank Payments Platform on Quorum Blockchain
Wall Street banking giant JPMorgan Chase is launching a new interbank payments platform powered by blockchain, the firm announced today.
With the participation of two other banks – Australia-based ANZ and the Royal Bank of Canada (Australia) – the Interbank Information Network (IIN) will be built on Quorum, the ethereum-based blockchain network first unveiled last fall. Additional institutions are expected to join the initiative in the coming months, with a specific focus on the correspondent banking market.
Emma Loftus, head of global payments and foreign exchange for JPMorgan Treasury Services, said in a statement: "IIN will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays. Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks." It's a notable application for the bank, given that its treasury services clear trillions of dollars in transactions per day. Previous reports, including a February 2016 story from the Wall Street Journal, indicated that cross-border payments had emerged as a key use case area for the bank.
And in spite of its CEO's anti-bitcoin stance, the cryptocurrency's underlying tech has been an area of growing focus for the bank in the past year, as seen in its work with Quorum as well as initiatives like the Hyperledger Project and the Enterprise Ethereum Alliance.
It’s a week full of high impact news, today we have 2 x ECB members talking including president Draghi and also FOMC member Kaplan talking at 13:00BST. The Dollar has been on the front foot this week, we will see Building Permit data in the early US session which could tick higher after the rebuild from the hurricanes begins.
For Oil traders EIA stock data due at 15:30BST. Happy trading...
Bank of America Report: Bitcoin's True Value 'Impossible to Assess'
A potential move by global brokerages to offer products around cryptocurrencies could have a big impact on the wider market, analysts at Bank of America Merrill Lynch wrote.
In an Oct. 16 research note entitled "Introducing cryptocurrencies – what are they good for?", the analysts tackle bitcoin as well as other cryptocurrencies such as ethereum and XRP. The note both covers the basics of the market and dives more specifically into the growing galaxy of open blockchain networks in operation today.
Notably, the report touches on the possible factors that could shape the cryptocurrency market's future progression – including financial products based on the tech.
On this point, the bank's analysts suggest that a move by brokerages to begin offering such services to their clients could affect both the overall liquidity of the market as well as the market capitalization for the relevant cryptocurrencies. "The coin universe is dynamic and innovative and volatile; while a true value for cryptocurrencies may be impossible to assess, one factor which we believe could affect their liquidity and market capitalisation would be if one or more global broker/dealers decided to offer institutional-like products," they wrote.
The past year has seen a number of high-profile efforts to build cryptocurrency-tied investment products, and firms like CBOE have described plans to take part in what is still a nascent ecosystem. Even so, regulators in the U.S. have reacted coolly to such proposals thus far.