India’s Oldest Bank SBI joins JPMorgan Blockchain Payment Network
The oldest bank in India, State Bank of India (SBI), has partnered with US bank, JPMorgan, to leverage its blockchain platform to speed up international transactions. This is the first of such partnerships in India and shows the growing adoption of blockchain-based solutions by banks.
SBI to Integrate JPMorgan Blockchain Solution for Cross-border Payments
The development was revealed today by local news outlet the Indiatimes. According to the report, the partnership will offer SBI immense benefits. One of which is the reduction in transaction costs and time taken for payments.
SBI expects that implementing JPMorgan’s blockchain solution will reduce cross-border payments-related inquiries from two weeks to a few hours. This will help cross-border payments to reach their beneficiaries faster and efficiently.
Speaking on the partnership, Venkat Nageswar, deputy MD of SBI, believes that it is part of its ongoing digital transformation. “We have undergone a significant digital transformation in recent years and continue to add new technologies to create real value to daily operations,” He said.
SBI is also the first bank in India to join the network, and more developments are expected to occur with the partnership. JPMorgan representative in India, P D Singh further outlined that the bank was looking to expand its blockchain presence. “We continue to actively explore how emerging technologies can enhance our clients’ experience,”
JPMorgan Blockchain Solution Continues to Grow
JPMorgan has continued to make inroads with the adoption of its blockchain technology “Liink.” Liink is a peer-to-peer network for financial institutions, corporate organizations, and fintech companies.
It also enables users to make secure peer-to-peer transactions leveraging the speed and control of blockchain technology. Crucially it mitigates the risks involved in cross-border transactions, and this has appealed to several banks. At the time of writing, over 100 banks have joined the Liink network. There are also speculations that many banks and financial institutions, both government and private, are in talks with JPMorgan to utilize Liink.
Banks across the world are taking to blockchain-based clearance systems for cross-border transactions. Popular cross-border payment blockchain Ripple has over 150 financial institutions on its Ripplenet solution. Banks’ rush to use blockchain-based solutions is to get the first mover’s advantage while making payments faster and cheaper.