JP Morgan has partnered with DBS Bank and Singapore government-owned firm Temasek to introduce a new joint payments company.
According to JP, the new company – named Partior – aims to ‘disrupt the traditional cross-border payments ‘hub and spoke’ model’ that has caused a number of nagging issues including multiple validations on payment details by banks.
The company’s payment platform is backed by blockchain, and enables ‘next generation, programmable value transfer’ for participating banks and their clients in real-time.
The platform is also aiming to develop wholesale payments rails based on digitised commercial bank money. This, J.P claims, will allow ‘atomic’ or instant settlement of payments for a range of different financial transactions. The company continued saying this would aid banks in overcoming issues presented by the current standard method of processing global payments.
JP remarked Partior aims to offer 24/7 infrastructure that will allow financial institutions and developers to co-create applications that support use cases such as Peer-to-Peer escrows, Delivery Versus Payment and Payment Versus Payment to value-add and complement global financial networks.
Partior will actively engage with leading banks to join the platform in order for the company to establish considerable scale. It will aim to start with a focus on facilitating flows between Singapore-based banks in both SGD and USD.
The operation and completion of development, availability and launch of services are subject to regulatory consent and approval.
Temasek deputy CEO Chia Song Hwee said, “We are pleased to work alongside DBS and JP Morgan to create a global platform that will have a tangible impact on global payments. Partnerships such as this are important in galvanising fundamental changes. Finding the right approach to payments transformation using new technologies should be a priority as we take our existing infrastructure into the next stage of digitalisation and connectivity.
“We’re also heartened by the interest from other banks and partners, and look forward to welcoming them on board as this new platform builds out.”
Monetary Authority of Singapore Chief FinTech Officer Sopnendu Mohanty added, “The launch of Partior is a global watershed moment for digital currencies, marking a move from pilots and experimentations towards commercialisation and live adoption.
“With its genesis from Project Ubin, a public-private partnership on blockchain and CBDC experimentation, 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.”
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