Major American investment bank JPMorgan, Singapore’s largest bank DBS, and state investment firm Temasek recently announced their plan to launch a new blockchain company called Partior that will promote the use of global payments and interbank transactions.
In an announcement, JPMorgan indicated that Partior would enable instant settlement of payments for various types of transactions such as FX Payment Versus Payment (PVP), Delivery Versus Payment (DVP) and Peer-to-Peer transactions to support the global financial ecosystem.
‘We believe a shared ledger infrastructure such as the Partior platform will change the way payments are cleared and settled, through this first-of-its-kind, wholesale payments rail based on digitized commercial bank money,’ JPMorgan Global Head of Wholesale Payments Takis Georgakopoulos said in the announcement.
On the other hand, DBS Bank CEO Piyush Gupta stated that frequent delays in traditional global payments create inefficiencies in the final settlement of other assets.
‘By harnessing the benefits of blockchain and smart contracts technology, the Partior platform will address current points of friction. The open platform will enable banks around the world to provide 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,’ Gupta added.
Moreover, the platform will not only provide 24/7 infrastructure for financial institutions but also help developers co-create applications. This includes FX payment versus payment, delivery versus payment (DVP), and peer-to-peer escrows.
Partior’s future partnerships
JPM indicated at a press release that in order to encourage broad participation across the banking industry, Partior will actively engage leading banks to join the platform.
Currently, Temasek’s Deputy CEO Chia Song Hwee declared that they have already received interest from other banks and are looking forward to welcoming them on board as this new platform builds out.
In response to these developments, Chief Fintech Officer of the Monetary Authority of Singapore (MAS) Sopnendu Mohanty remarked, ‘Partior is a pioneering step towards providing foundational global infrastructure for transacting with digital currencies in a trusted environment, spurring a wide range of use cases in the blockchain ecosystem.’
Be updated with the latest cryptocurrency news and updates here at Cryptoshimbun!