American banking giant JPMorgan Chase and international payment network Visa have teamed up on a new blockchain-based service for cross-border payments. The platform is being developed as part of the former’s Interbank Information Network, which has previously been described as a “real-time compensation system,” according to a press release published by Visa recently, cross border payments are expected to go live next year, and will involve some 450 banks in over 75 countries.
Visa itself has been exploring blockchain for several years already, with its head of research saying in 2017 that the technology might represent a solution for some of the industry’s “pain points.” As reported by the media earlier this month, Visa has also partnered with blockchain startup Anchorage to develop a digital asset custody offering for financial institutions.
The new blockchain-powered payments solution will reportedly allow banks to settle transactions in real time using smart contracts on an Ethereum network-based public permissioned blockchain. The service is expected to go live next year and involve some 450 banks in over 75 countries, with the ultimate goal of expanding it further into other regions around the world.
Cross Border Payments Finalized
In addition to JPMorgan and Visa, other members of Swift’s global payment network include Bank of America Merrill Lynch (BAML), BBVA Compass, CIBC Bank Canada, DBS Bank Ltd., HSBC Bank USA N.A., MUFG Union Bank N.A., Regions Financial Corporation and Royal Bank of Canada (RBC).
The service of cross border payments is expected to go live very soon, and will involve some 450 banks in over 75 countries.
Visa has partnered with JPMorgan Chase in its initiative of cross border payments. The two firms are working together to develop the infrastructure for a new global payments network based on blockchain technology.
The project is designed to be interoperable with other payment systems, so that it can integrate with other networks seamlessly.