Deutsche Bank Unveiled As Latest Member of JPMorgan Crypto Payments System

Deutsche Bank JPMorgan crypto cryptocurrencies blockchain Interbank Information Network

Global banking group Deutsche Bank has been announced as the latest member of JPMorgan’s blockchain payments network, becoming the latest mainstream financial giant to back blockchain tech.

The news makes Deutsche Bank the 320th member of JPMorgan’s Interbank Information Network (IIN), according to reports in the Financial Times.

The network aims to reduce the transaction costs for interbank settlement, as well as ensuring a quicker turnaround time for payments between member companies. Built on Quorum, the ethereum-based network is powered by an in-house token, known as JPM Coin.

Trials of the new network began back in June, with a series of remittance trials between JPMorgan client banks.

To date, the majority of members have been using the system for processing USD payments. As the largest euro-denominated clearing bank in the world, Deutsche Bank is expected to process transactions in euros through the network.

Welcoming the news, Takis Georgakopoulos, managing director of treasury services at JPMorgan, said Deutsche Bank would broaden the pool of banks using the network, “to help us drive towards ubiquity.”

The IIN aims to increase the efficiency of interbank transfers by writing transaction data to the shared ledger. According to Ole Matthiessen, head of cash management at Deutsche Bank, this will lead to faster payments with fewer manual processes and quicker resolutions for problematic transactions.

With Deutsche Bank now increasingly focusing on transaction banking rather than investment banking, the move was described as “an important step” for reducing costs and delivering better services to its clients.

According to Matthiessen, IIN is still on course to reach its target of 400 member institutions by the end of the year, suggesting that several other major global banks are already in discussions with JPMorgan over joining the network.

The news reflects a growing trend toward crypto and blockchain technologies in the mainstream finance world, for reasons including lower costs, faster transactions and greater transparency.

As more banks and payment companies embrace the efficiencies of blockchain payments, the technology is expected to play an increasing role in global and interbank remittance in future.