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JP Morgan plans to launch its blockchain in Japan

By:
on Dec 10, 2019
Updated: Mar 11, 2020
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  • A recent announcement claims that JP Morgan plans to launch its blockchain in Japan in early 2020.
  • Around 80 banks in Japan announced that they plan to join the investment bank's initiative, likely in order to improve Anti-Money Laundering measures.
  • Meanwhile, JP Morgan continues with its new project for derivatives, which will improve the speed of transactions for cash and collaterals.

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Earlier in 2019, JP Morgan announced plans to launch its own cryptocurrency — a move that the crypto community criticized quite heavily ever since. However, the bank continued with its plans, and another recent announcement revealed that JP Morgan also plans to expand its blockchain and see it emerge in Japan in early 2020.

JP Morgan’s blockchain to improve IIN

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The bank’s blockchain platform, known as Quorum, remained in-house until now. However, it will now be used for the improvement of IIN (Interbank Information Network), which will improve the speed of transactions, as well as deal with some of the larger challenges. Most of these challenges involve sharing data between different banks.

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The platform has already started attracting attention in Japan, with over 80 banks within the country admitting that they plan to join it. Since September of this year, around 365 institutions announced their participation in JP Morgan’s project, 20% of which are banks based in Japan. This makes Japanese banks the largest group of participants from a single country.

Meanwhile, JP Morgan’s executive director, Daizaburo Sanai, commented on the IIN initiative, stating that it is currently operating at around 70 different banks throughout Europe, the US, and Asia.

While this did not include banks from Japan until now, this is likely to change in January 2020. Sanai seems to believe that the main reason why so many Japanese banks aim to join is the potential to improve Anti-Money Laundering (AML) measures.

JP Morgan’s new plan

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As for JP Morgan itself, the bank is known for its recent activity in the blockchain space, which brought additional attention to the blockchain industry. After all, JP Morgan is the second largest investment bank in the world, bested only by Goldman Sachs itself. Earlier this year, the bank announced its own cryptocurrency, JPM Coin, which is expected to see a launch in the final days of 2019. Furthermore, the bank also announced that it has a new derivatives-based project in mind, which would speed up transfers of collaterals and cash alike. To achieve this, JP Morgan entered a partnership with a fintech company Baton Systems about a month ago, in mid-November.

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