DBS Bank, a multinational banking and financial services company based in Singapore, and JP Morgan, the United States-based banking and financial services firm, have collaborated with each other to develop a new blockchain platform. These are not, however, the only two firms that are involved in the development of this blockchain company, but Temasek, a state investment company, based in Singapore, has also collaborated with them in this project.
Improving Cross-border Payments
The blockchain company that is being launched by these major banking firms is known as Partior. The main purpose of this blockchain platform is to make the process of cross-border payments better and efficient using blockchain technology. It will also focus on digitizing commercial bank money.
Using blockchain technology, the new blockchain platform will lower friction present in trade transactions, foreign exchange settlements, and of course, cross-border payments as well, which is the priority of the banking giants.
Wholesale Payments Infrastructure Based On Blockchain
The task of Partior will be to develop a wholesale payments infrastructure that will be based on blockchain as well. Commenting on this new development, the Global Head of Wholesale Payments at JP Morgan, Takis Georgakopoulos, said that this wholesale payments infrastructure would provide a place where value and information could be changing hands all across the entire world 24/7 and in a frictionless way.
As soon as this infrastructure is completed, it will allow developers and financial institutions from across the world to develop applications together. These apps will support peer-to-peer (P2P) escrows, delivery versus payments, and forex payment versus payment.
The initial focus of Partior will be to facilitate payments between banks based in Singapore. These payments will be facilitated in two fiat currencies United States Dollar (USD) and Singapore Dollar (SGD). However, their plan is to extend this offering to other markets of the world as well, and they will also add support for more fiat currencies when the offering is expanded fully. All of the three firms stated that they might also add support for Central Bank Digital Currencies (CBDCs) as well in the future.
This is not the first time that these three firms are working together on a project. They have already worked together in the past on a project called Project Ubin.