Leading American investment bank JPMorgan collaborates with DBS, the largest bank in Singapore, and Temasek, a state investment firm, introduces a new blockchain company for global payments and interbank transactions. As per the official announcement, JPMorgan plans to promote trade and foreign exchange settlements via a newly built platform. The bank also featured the role of blockchain technology in cross-border payments. Named ‘Partior,’ the recently established company is preparing to bring more effective digital clearing and settlement solutions via the employment of blockchain technology.
This would allow instant settlement of payments for several types of transactions, helping banks overcome global payment-link challenges in the recent financial system, JPMorgan detailed in a Wednesday declaration. The new platform is based on JPMorgan and Temasek’s past work as a member of Project Ubin, a blockchain-powered multi-currency payment drive launched by the MAS (Monetary Authority of Singapore) in 2017. Now via the functionality of Partior, which is directed to regulatory approvals, the three companies plan to revolutionize interbank value movements in a new digital era.
Partior to Focus on Flows Between USD and SGD
Partior’s platform will launch, concentrating on promoting flows essentially within Singapore-based banks in both the USD and the Singapore dollar, striving to expand service offerings to other markets in different currencies. After completion, the platform intends to offer 24/7 infrastructure that will allow financial institutions and developers to co-create applications that encourage use cases like delivery versus payment, forex payment versus payment, and peer-to-peer escrows. Moreover, Partior will also complement CBDC (central banks’ digital currency) projects and use cases.
Furthermore, Partior will resolve pain points or frictions of trade, payments, and foreign exchange settlement via blockchain technology. All three Partior project participants are strengthening their engagement in the cryptocurrency industry. In late 2020, DBS founded a cryptocurrency exchange division named DBS Digital Exchange, enabling investors to trade significant coins, like Bitcoin, Bitcoin Cash, Ether, and XRP. JPMorgan reportedly commenced hiring Ethereum developers in April.
Also, there are some rumors about the company that it is planning to introduce an actively managed bitcoin fund. As contended in March, Temasek is allegedly a bitcoin investor. The use of blockchain technology in cross-border payments has grown prominently during the last few months. Various financial institutions have commenced developing effective blockchain payment networks to decrease time and costs. In November 2020, Australia had trialed paperless trade with Singapore through blockchain technology.