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How Blockchain-based Partior enables 24/7 real-time funds transfer in S’pore – Wired PR Lifestyle Story

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It’s a common story of cryptocurrencies and big banks fighting each other.

After all, having cryptocurrency undermines the purpose and functions of large banks. However, the creation Partior – A joint venture between JP Morgan, Temas and DBS – all of that will change.

The first initiative in the industry, Partior will combine the best parts of the cryptographic philosophy and combine it with the needs of the traditional banking system.

At the Singapore Fintech Festival 2021’s ‘Blockchain and Big Banks: The Yin and Yang of Modern Economy’ workshop, we heard from Armaan Sinha and Tiena Sekharan, both vice presidents of Onyx (JP Morgan) about this exciting new adventure.

Defective payment system

Ask any banker, and they will tell you that a bank’s payment system is very complicated. Contrary to popular belief, the payment systems of banks are not as intuitive or simple as you might think.

“The cross-border payment system is currently broken,” Tiena said. “It’s a very complicated process to involve four or five bank correspondents in any cross-border transaction.”

It would be a very long settlement cycle from the start of payment to the recipient.

Tiena added that there is often a lack of transparency and visibility in the event of a delay. If you lose money, you need even more to know where the money has gone.

You should consider individual vacation and cut-off times in different geographies, especially when you’re talking about different time zones.

“It is likely that the two markets will not have overlapping time zones at all. And all of that causes big problems, of course. ”

That’s where the blockchain-based Partior comes in to help address all of these issues.

The perfect marriage between crypto and traditional banking

Image Credit: JP Morgan’s Onyx

Tiena describes Partior as a “natural extension of JPM Coin” because JPM Coin requires someone to be a customer of JPMorgan. “We believe that any bank should be able to access the best financial services.”

Partior eliminates the convolutions of the correspondent’s banking system, and extends real-time payments to everyone 24/7, no matter what bank you bank with.

It seeks to disrupt the traditional cross-border center that has caused common pain points, including multiple validations. [and] control points, which, of course, involves expensive and hard post-transaction manipulation and reconfiguration.

Armaan Sinha, vice president of JP Morgan’s Onyx

Partior allows financial institutions to offer their corporate clients the ability to facilitate payments in any currency in any geography in real time, 24/7.

It’s your money – you can transfer it whenever you want, to whoever you want. You shouldn’t limit your workdays to 9am and 5pm, and that Partior is something that makes it possible.

Tiena Sekharan, vice president of Onyx at JP Morgan

It reduces settlement time and allows for programmable payments, such as manual transactions, with transparency, privacy, the purpose of settlement that is not offered by traditional co-payment banks.

Shared book book between banks

Temasek partition dbs jp morgan
Image Credit: JP Morgan’s Onyx

As a decentralized but authorized peer-to-peer network, Partior runs on a shared infrastructure of technological registers aimed at having information in multiple banks and currencies.

Quorum is built on Ethereum, a fork in the Ethereum blockchain.

This initiative gives a strong result MAS Project Ubin, who wants to explore uses of blockchain technology for clearing and setting money.

This shared book is among the many branches of JP Morgan itself and is in the same currency. This process uses the JP Morgan Coin (JPM Coin), a digital representation of a deposit account, facilitating the movement of funds between JPMC branches and networks.

“It basically allows customers to transfer US dollars between JP Morgan’s branches 24/7. We are trying to expand the scope of this book to include multiple banks and currencies to create a shared book in the banking network, but in a specific region.”

JP Morgan currently has six branches in New York, Singapore, Hong Kong, London, Luxembourg and Australia. There is only one direct currency, the US dollar, and there are two other currencies at work.

Commercial banks and participating banks participating in this platform can make payments to their customers in the digital deposit accounts of the chain and from them to deposit accounts. All of this is accurately supported, in real time, 24/7, 365 days a year.

It is important that all account balances are treated as deposit liabilities to the trading side. And the platform does not create, hold or transfer stable coins or other digital tokens that will go to any participant in life.

I think as people who represent traditional banks, we need to remind them that Barnes and Nobles was not interrupted by WH Smith. Amazon interrupted.

So it takes an hour now for the different banks to come together. Banking is a competitive business Bankers are very competitive. But, it’s time to come together to share books so that we can provide the best service to our customers and that’s what Partior tries to do.

Tiena Sekharan, vice president of Onyx at JP Morgan

JPM coin
Image Credit: JP Morgan’s Onyx

Companies can now send money 24/7 all this in real time. With this, there is a strong chance of optimizing liquidity.

Typically, companies tend to keep money bags in different jurisdictions because they do not have a guaranteed account if they do not guarantee the movement of funds that may occur.

“There is a significant reduction in costs because we are converting everything through transfer. All of this is using distributed registry technology, so it’s very secure [and] safe, ”Armaan said.

“Given the future protection of arbitration, this system is an interoperable API with other blockchain networks.”

Payment programmability

Because Partior allows for real-time payments 24/7 in all countries and banks, it’s something that allows for programmable payments.

“What I mean by this is that it will no longer require the Treasury, which employs several banks, to manually enter each transaction. It is possible to automate many things,” Tiena explained.

“For example, if the balance in a particular account falls below the level one is comfortable with, the amount can be silenced from that other account.”

If you find the knowledge vague, it’s because this concept is taken from smart blockchain contracts.

Partior enables payment programmability, such as automated applications, and additional payment for government funding.

“Because all of this is already in a digital account, which is basically how JP Morgan Coin and shared book technology will come to an end,” Armaan said.

Partior is also fully interactive. “The idea here is to make sure we are compatible with the past, but that we are ready for the future,” Tiena said.

This means that Partior will be able to interact with current RPG (risk-buying) systems. Fedwire. He also explained that Partior would be compatible with TERP systems, perhaps with PayMet in Malaysia and UPI in India.

Partior will be ready for the future, that is, as the Digital Currency of the Central Bank is put into the network, Partior should be able to interact with all these platforms.

This will not be a silicate system in a vacuum. It will be something that interacts with different payment methods, and ones that are already well rooted in the global payment system.

Tiena Sekharan, vice president of Onyx at JP Morgan

Since the partior system is not silated, all participants are working on a single platform and this is beneficial because it makes pre-estimation possible.

“It is possible to pre-validate accounts and transaction details. When that happens, there will be fewer errors later. And for anyone who has worked to find and correct mistakes in cross-border payments worldwide, that’s the real challenge. “

Tiena stressed that looking for mistakes takes a lot of time, consumes resources and causes delays. In a single partior platform, pre-estimation becomes possible, and all these cumbersome processes can be avoided.

The future of the parties

Temasek partition dbs jp morgan
Image Credit: JP Morgan’s Onyx

Partior is not a dream, but a reality that is happening today.

“The project is a pilot phase where we are currently transforming US dollars as well as Singapore dollars while we talk between JPMorgan and DBS Singapore.”

These transactions are happening directly because the platform is already configured. The Partior system is focused on building more liquidation banks, more participatory banks and more corporations.

This new platform will break the traditional banking and pave the way for a new payment system that uses the blockchain and the best part of the bank.


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Featured image: Partior LinkedIn / Citywire Asia / Munshi Ahmed via Getty Images / Shutterstock



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