JPMorgan has teamed up with Temasek Holdings and DBS Group Holdings to launch a new blockchain payments platform. The platform will also be used in trading activities and foreign exchange settlements.
JPMorgan Chase & Co, a leading global investment banking firm, is partnering with Temasek Holdings from Singapore and DBS Ltd. to develop a blockchain-based platform. The new firm, which will be named Partior, will also be used for trade and settling foreign exchange transactions.
Partior will adopt blockchain technology and digitize commercial bank currency to reduce the issues faced in cross-border payments, trade, and foreign exchange settlements. These details were issued during a press release by the firm.
Enhancing payment services
Partior is a name that means distribute and share. The company will help overcome the limitations present in traditional payment platforms, such as multiple validations. This new company will enable digital clearing and payment settlements across financial institutions.
Partior will also enable the use of digital currencies to automate the settlement of transactions. This feature will help banks and other financial institutions to overcome the challenges of cross-border payment processing.
The CEO of DBS Bank, Piyush Gupta, pointed out how making global payments is an erroneous process because of the incorporation of intermediaries. The CEO added that using blockchain and smart contracts would help solve the issues faced during payments. Through open banking, global financial firms will have an efficient way to make real-time cross-border payments and conduct trading activities.
The global head of wholesale payments for JPMorgan also commented on the development, noting that Partior will help financial institutions focus on offering their clients the best innovative platforms that have transformed with time. Partior provides a shared ledger infrastructure that will change the nature of payments.
Tapping into blockchain & promoting digital currencies
Partior will tap into blockchain technology to make it easy to process payments in the digital era. The deputy CEO of Temasek, Chia Song, added that the newly launched platform would impact global payments using new and innovative technologies. It will therefore promote the movement of cryptocurrencies.
Launching the platform will also improve the speed at which cryptocurrencies are commercialized and adopted. Partior will lay down the foundation on which the world can start using digital currencies in a credible ecosystem.
However, before Partior can be developed and launched for use, it will have to meet all the regulatory and compliance laws for approval. Once the project is completed, it will offer around-the-clock support infrastructure for financial institutions.