At Sibos in Sydney, Emma Loftus, JP Morgan’s Head of Global Payments, talked about JP Morgan’s Interbank Information Network (IIN). The new blockchain platform uses the conventional correspondent banking system. So far 100 banks have indicated that they want to join the network,
up from 75 just a few weeks ago (
list of banks included).
No bank will have a relationship or account with every other bank in the world. Hence banks often have to route payments through go-between or correspondent banks. Blockchain innovations for bank-to-bank payments tend to fall into two groups. One set works with correspondent banks, the other tries to avoid them.
For example, VISA is close to launching
B2B Connect which uses the VISA network to route payments instead of correspondent banking. Ripple has two solutions, one which uses the corresponding bank system and another which avoids it (
XRapid).
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