For the past few weeks, the concept of cross-border payments has been in the limelight. As a result, JPMorgan & Visa have joined forces to explore cross-border blockchain payments.
Private blockchain solutions Liink and B2B Connect to allow cross-border payments.
As per reports, JPMorgan's Liink network is specifically designed for cross-border payments and is available via the bank's blockchain and payments initiative Onyx. Onyx is a technology that allows financial institutions to share financial information and validate transactions.
Visa's B2B Connect, a network akin to Liink that was designed for institutional usage, has now been integrated with Onxy's Confirm.
Confirm is a solution that validates account information and guarantees that transacting parties provide true identities and proper information. Confirm, according to Onyx, can verify more than 2 billion bank accounts from 3,500 financial institutions.
According to a local media outlet, J.P. Morgan is searching for a slew of founding member institutions from around the world as it prepares to launch Confirm in ten countries by the end of this year. Moving forward, the bank is thought to be planning a rollout in 30 nations next year.
Visa's collaboration with JPMorgan and its suite of blockchain products appears to be aimed at offering an alternative to the widely utilised Society for Worldwide Interbank Financial Telecommunications (SWIFT) messaging system for managing and facilitating cross-border payments.
The concept of cross-border payments has been in the limelight this week, with the MAS revealing on Monday that it may seek to use blockchain technology to address present challenges, such as speed and cost.
In a keynote speech, Ravi Menon, Managing Director of the Monetary Authority of Singapore, stated that the current state of cross-border payments is unfit for the twenty-first century, adding:
“It is time-consuming, expensive, inefficient, and ineffective, depending on an outdated network of correspondent banks.”
He outlined that one possible solution may be the growth of private sector blockchain-based payment networks.
This week, XRP developers Ripple Labs made advances with its cross-border payments platform On-Demand Liquidity (ODL). On October 11, it announced collaborations with payments business Lemonway and money transfer service Xbaht to enable crypto payments to customers in France, Thailand, and Sweden via the ODL network.
Read also: Price of XRP may change as Ripple expands in Europe
