JPMorgan Seeks Patent for Blockchain-Powered Interbank Payments

JPMorgan Chase is trying to find to patent a procedure for working with distributed ledgers as a way to facilitate and reconcile fiscal transactions, freshly-released filings display.

In a patent application published by the U.S. Patent and Trademark Place of work on Thursday (which was originally submitted last October), JPMorgan outlined a procedure that works by using distributed ledgers to report payments staying sent from a single bank to an additional working with a peer-to-peer network. In accordance to the bank, the tech’s use would give “a unique procedure for recording transactions and storing info.”

The capacity to replicate that info on the ledge throughout a public or non-public distribution network features an additional reward, the filing notes.

JPMorgan goes on to describe:

“In a single embodiment, a process for processing network payments working with a distributed ledger may perhaps include: (1) a payment originator initiating a payment instruction to a payment beneficiary (2) a payment originator bank posting and committing the payment instruction to a distributed ledger on a peer-to-peer network (3) the payment beneficiary bank posting and committing the payment instruction to the distributed ledger on a peer-to-peer network and (4) the payment originator bank validating and processing the payment via a payment originator bank interior procedure and debiting an originator account.”

A blockchain could strengthen upon existing methods by making it possible for serious-time settlement extra cheaply and promptly than is possible at existing, in accordance to the bank.

“For a cross-border payment to be built from a payment business to a payment beneficiary, a quantity of messages ought to be sent amongst the banking companies and clearing residences involved in processing the transaction. This usually benefits in a slow transaction, as there are may perhaps be delays in provider thanks to correspondent banking, messaging networks, and clearing intermediaries in the payment movement,” the application describes.

It is perhaps unsurprising that JPMorgan would find a patent for its blockchain-related perform in the location of interbank payments. The bank launched a platform for just that type of provider, built on ethereum-offshoot Quorum, days in advance of it filed the patent application.

“Blockchain abilities have authorized us to rethink how important facts can be sourced and exchanged amongst international banking companies,” Emma Loftus, head of international payments and foreign exchange for JPMorgan Treasury Expert services, stated at the time.

JPMorgan graphic via Jonathan Weiss / Shutterstock

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