German multinational banking behemoth Deutsche Bank has joined a blockchain network of more than 300 banks led by JP Morgan.
According to news publication Finance Magnates, Deutsche Bank is now the latest member of the blockchain-based Interbank Information Network (IIN).
Members of the IIN share information on global payments through blockchain technology. The goal is to enable payments that are not subject to costly delays, which currently affect roughly 1.5% of all cross-border payments.
To achieve this goal, the banks ensure that all relevant information about any transfers is immediately accessible to other members of the IIN.
Industry giant JP Morgan acts as a correspondent bank to process payments made using the US dollar.
Deutsche Bank, meanwhile, is the largest clearer of euro-denominated payments in the world. As such, it is believed that in joining the IIN, Deutsche Bank will be able to provide greater services for European clients as well as lowering the cost of processing difficult payments.
“Our competitors are not just the other banks, it’s also new players in the market. We need to become efficient enough to provide seamless real-time and digital processes,” says Ole Matthiessen, head of Deutsche Bank’s cash management division.
The IIN now has 320 members in total, though only 65 have actually started using the blockchain system while 255 have signed letters of intent. By the close of the year, the IIN is forecast to have reached 400 members.
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