JPMorgan and DBS to launch blockchain cross-border payment platform
American investment firm JPMorgan has made partnership with the largest bank from Singapore, DBS, and state investment firm Temasek to launch a new blockchain company focused on global payments and interbank transactions.
According to the announcement by JPMorgan, Dubbed Partior, the new establishment will use blockchain technology and digitize commercial bank money to overcome the existing friction in cross-border payments, trade transactions and foreign exchange settlements. Such functionality would make instant settlements of payments for several types of transactions, helping banks to avoid global payment-related challenges that are taking place in the current financial system.
The new platform builds on JPMorgan and Temasek’s past work as a part of Project Ubin, a blockchain-based multi-currency payment system initiated by the Monetary Authority of Singapore in 2017.
Partior’s platform will be focusing on facilitating flows mainly between Singapore-based banks in both the currency, United States dollar and the Singapore dollar, expecting to expand service offerings to other markets in different currencies as well. The announcement notes, platform is aiming to improve ongoing central bank digital currency (CBDC) projects and use cases.
DBS CEO Piyush Gupta stated that blockchain technology and smart contracts will enable Partior to support “real-time cross-border multi-currency payments, trade finance, foreign exchange and DVP securities settlements on a world-class platform, with programmability, immutability, traceability built into its suite of services.”
All three Partior project participants firms are consolidating their role in the cryptocurrency space. In late 2020, DBS established a crypto exchange division called DBS Digital Exchange allowing investors to trade mainstream cryptocurrencies including Bitcoin, Ether, Bitcoin Cash and XRP.