JPMorgan, a leading American bank, has confirmed its partnership with DBS Group Holdings and Singapore-based investment company Temasek to establish a blockchain-enabled foreign exchange platform that can be used for settlement, trade, and payment for smooth cross-border transactions.
The company behind this new platform will be called Partior and will use blockchain technology to simplify cross-border currency transactions by minimizing latency and frictions.
An announcement cited by Blockchain.news said, “Partior is expected to develop wholesale payment rails based on digitized commercial bank money to enable ‘atomic’ — or instantaneous — settlement of payments for various types of financial transactions, according to the statement.”
Persisting problem in the digital era
In this digital age, cross-border payments sometimes become troublesome and slow. These problems are what Partior will attempt to solve. The chief fintech officer of the Monetary Authority of Singapore said that the “launch of Partior is a global watershed moment for digital currencies, marking a move from pilots and experimentations toward commercialization and live adoption.”
In the not too distant future, the new blockchain-powered platform is expected to be designed to augment the continuing initiatives for Central Bank Digital Currency (CBDC).
Getting more involved in crypto
The leading American bank is on a spree of activities that promote its involvement in the crypto and blockchain sphere.
Just last month, JPMorgan established an investment basket that is linked to crypto-focused companies such as Nvidia, Square, and MicroStrategy. This will make investors directly exposed to a bigger basket of companies like PayPal, Advanced Micro Devices, Taiwan Semiconductor Company, Intercontinental Exchange, CME Group, Overstock.com, and Silvergate Capital.
The financial product will enable institutional investors to have exposure to the growing cryptocurrency market even without actually holding digital assets.