Deutsche Bank, the German financial giant joins blockchain network of JP Morgan, known by the name, Interbank Information Network (IIN).
JP Morgan, the bank that headed the blockchain project started in 2017 has garnered a network that includes 320 financial institutions who will use the platform to exchange payments data worldwide with Ethereum. The platform works on a mutual distributed ledger technology.
The head of payments, Takis Georgakopoulos, JPMorgan, said that Deutsche Bank is the first of all large banks to have entered into IIN. Deutsche Bank is touted to be the world’s largest dealer in the clearing of payments in euro denominations.
“A network that only has JPMorgan’s clients will have very big natural limitations,” said Takis.
“It would mean that all of these other smaller banks would still need to have bifurcated procedures, what they do with JPMorgan and what they do with other banks would still have to be different.”
“Having Deutsche join — and hopefully Deutsche will be the first of several other large banks — is going to help us drive towards ubiquity and ubiquity is a prerequisite for the success of the network.”
IIN will help Deutsche Bank province high-end client services, said Ole Matthiessen, head of cash management at the bank. Matthiessen services the bank beginning March of 2019. He explains that the bank is hoping for IIN to diminish the processing cost of difficult payments.
IIN works on JPMorgan’s Quorum platform that can address the prime challenges the hover information sharing amongst banks and expedite transactions for users. Quorum relies upon Ethereum, as recently revealed by Vitalik Buterin, the platform’s co-founder, to be full like other blockchain networks that decentralized apps employ.
JPMorgan plans to do 400 bank agreements by 2019 end along with releasing JPM Coin, its in-house cryptocurrency. Recently, Jamie Dimon, CEO, JP Morgan showed optimistic views of Facebook’s Libra, stating that the currency will in no way pose risks to banks too soon. Deutsche Bank is also to meet Libra founders in Switzerland to talk over financial risks.
The aim is to make payments quick and easy by instant information delivery regarding the transfers to all the banks in the chain.
Cash management remains the only source of strength in global transactions for the bank after restructuring cuts from its investment bank. Matthiessen has headed the cash management of the Deutsche bank since March.
“Our competitors are not just the other banks; it’s also new players in the market, we need to become efficient enough to provide seamless real-time and digital process,” Mr. Matthiessen said.
“It is definitely directionally a very important step for us because it will help drive [customer] satisfaction.”