JPMorgan and VISA are collaborating to join their own private blockchains. Currently, Onyx’s new tool Confirm, Liink, has integrated with B2B Connect, which will be utilized in the future to verify accounts for cross-border payments. And approve new users when they apply to join.
JPMorgan, the largest investment bank in the world, is collaborating with payments titan VISA to leverage its private blockchain network Liink and B2B Connect to facilitate cross-border payments.
Liink is a private blockchain network built for cross-border transactions by JPMorgan Chase in 2017 and maintained by the bank’s blockchain business Onyx in 2020. Onyx provides organizations with a trading platform for shared financial information and verification. Visa’s B2B Connect, on the other hand, is a blockchain network similar to Liink that was designed for institutional use.
Finextra reports that Confirm, a new solution for Liink launched by Onyx, has finished the integration of B2B Connect and will be used in the future to verify accounts for cross-border payments and authorize when new users apply to join.
Confirm is an account information verification tool that enables institutions to validate account information securely prior to sending a payment, thereby minimizing bounced payments owing to incomplete or erroneous information and fraudulent activity by pre-validating account information. Onyx asserts that Confirm can verify more than 2 billion bank accounts and 3,500 financial institutions worldwide.
JPMorgan Chase estimates that payment failures annually cost the global economy $118 billion, 66 percent of which are due to erroneous account information.
In addition, the article stated that JPMorgan Chase is seeking a number of international banks to join as founding members, and plans to debut Confirm in ten countries by the end of this year, with expansion to thirty countries anticipated for the following year.
A few days ago, the German banking behemoth Deutsche Bank joined Confirm as a founding member. Alex Littleton, the worldwide CEO of Confirm, stated in a public statement that network effects played a significant role in Confirm’s expansion.
The inclusion of Deutsche Bank as a founding member and the establishment of interoperability with the Visa B2B blockchain will speed our global adoption.
The collaboration between JPMorgan Chase and VISA also suggests that established banks are seeking blockchain-based cross-border payment alternatives.
According to prior reports from the Motion Zone, Michael Miebach, CEO of payment giant Mastercard (Mastercard), stated during a panel discussion on cross-border payments and CBDC in May of this year: The SWIFT system may cease to exist within five years if cryptocurrencies are widely used.