DBS, JP Morgan, and Temasek partner in blockchain payments platform

Monday 3 May 2021 11:17 CET | News

DBS Bank, JP Morgan, and Temasek have partnered to create a new blockchain-based platform for payments, trade, and foreign exchange settlement, according to The Straits Times.

The company, which will be named Partior, will leverage blockchain technology and digitise commercial bank money, with the aim of reducing current frictions and time delays in cross-border payments, trade, and currency settlements, the firms said. Partior, which means ‘to distribute and share’ in Latin, is also expected to develop wholesale payment rails based on digitised commercial bank money to enable ‘atomic’ - or instantaneous - settlement of payments for various types of financial transactions, according to the statement. That would help banks overcome challenges presented by the current standard sequential method of processing global payments.

Partior will target some of the most promising use cases for blockchain technology. Processes like cross-border payments can often be slow and cumbersome even in the digital era, so there is plenty of room for improvement. Partior will focus initially on facilitating flows primarily between Singapore-based banks in both US dollars and Singapore dollars, with the intent to expand service offerings to other markets and currencies. It will engage banks to join the platform to establish the scale required to benefit the industry.

Partior's platform will also be designed to complement ongoing central bank digital currencies initiatives and use cases. The venture by DBS, JP Morgan, and Temasek builds on their past work as part of Project Ubin, an industry initiative by MAS to explore the application of blockchain technology involving multi-currency payments and settlements.

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Keywords: partnership, banks, trade finance, JP Morgan, blockchain
Categories: Banking & Fintech
Countries: Singapore
This article is part of category

Banking & Fintech