JPMorgan teams up with Temasek and DBS to create a new blockchain-based platform for payments.
According to the Bloomberg report, JPMorgan Chase & Co. is partnering with Singapore’s Temasek Holdings Pte. and DBS Group Holdings Ltd. to create a new blockchain-based platform for payments, trade, and foreign exchange settlement. The company will leverage blockchain technology and digitize M1 commercial bank money, to reduce current frictions and latency for cross-border payments, trade, and currency settlements, the firms said in a statement Wednesday.
The company will develop various types of financial transactions.
The company, which will be named Partior, is also expected to develop wholesale payment rails based on digitized commercial bank money to enable “instantaneous” settlement of payments for various types of financial transactions statement. That would help banks overcome challenges presented by the current standard sequential method of processing global payments. Sopnendu Mohanty, chief fintech officer at the Monetary Authority of Singapore, said in a statement, “The launch of Partior is a global watershed moment for digital currencies, marking a move from pilots and experimentations toward commercialization and live adoption.”
Partior will be designed to complement CBDCs.
The newly formed company will target some of the most promising use cases for blockchain technology. Processes like cross-border payments can often be slow and expensive even in the digital era, so there’s plenty of room for improvement. Partior will focus initially on facilitating flows primarily between Singapore-based banks in both U.S. dollars and Singapore dollars, with the aim to expand service offerings to other markets and currencies later on. It will engage banks to join the platform to establish the scale required to benefit the industry. Partior’s platform will also be designed to complement ongoing central bank digital currencies initiatives and use cases. Central banks around the world are actively working on CBDCs.