Traditional financial institutions are increasingly using blockchain technology to improve their services. JPMorgan is no stranger to using blockchain technology, and it is now testing blockchain solutions to improve transfers.
JPMorgan testing blockchain solutions
Leading United States bank JPMorgan Chase has revealed that it is currently testing blockchain solutions to improve transfers. The bank said it is working with Taiwanese banks to test the blockchain solution.
According to the bank, the blockchain solution is called ‘Confirm’ and is designed to enable banks to confirm recipients’ account information before payments are made in real-time. JPMorgan said it is working with 12 banks in Taiwan, including CTBC Bank, Taiwan Cooperative Bank and First Commercial Bank.
The test involves sending funds to Indonesia using JPMorgan’s clearing solution “PayDirect.” JPMorgan added that banks could request and receive confirmation of beneficiaries’ account information in real-time, making it easier for them to confirm details before the transactions occur.
JPMorgan leads the way in blockchain innovation
This latest development makes JPMorgan one of the most active financial institutions in terms of blockchain development. The bank has been leveraging blockchain technology to develop solutions that would improve several aspects of its services.
JPMorgan is ahead of numerous banks in this area, as most of the other leading financial institutions are still trying to understand the technology and what it has to offer to the financial space.
Other leading US banks such as Morgan Stanley, Goldman Sachs, BNY Mellon, and State Street have all announced their entry into the cryptocurrency space. These financial institutions were skeptical of cryptocurrencies for the best part of a decade. However, they are beginning to change their stance as more clients demand exposure to Bitcoin and a wide range of other cryptocurrencies.