JPMorgan recently partnered with DBS to launch a new cross-border payment platform. The new platform intends to make cross-border payments hitch-free. This new project will also serve as a blueprint and complement for Central Bank Digital Currencies (CBDC).
JPMorgan is a well-known investment bank based in America while the other is based in Singapore. At the moment, DBS is the largest bank based in Singapore. The collaboration of the two giant institutions will lead to the birth of a new firm called Partior.
The Goal of the Collaboration
The goal of Partior is to make cross-border payments frictionless. The firm will utilize blockchain technology to solve existing problems like the speed of transactions and foreign exchange settlements. This new setup will definitely ease traditional banks of the stress and complications they currently experience in handling International transactions.
In the past, JPMorgan has successfully worked with Temasek in a blockchain-based project. The project was built to facilitate multi-currency payments in Singapore. Partior will focus on handling transactions between the US and Singapore. If the project becomes successful, it intends to then scale its operations to other surrounding countries and the rest of the world.
The platform will support both the United States dollar and the Singapore dollar. The project will also serve as a model for various CBDC projects that are under development.
The CEO of DBS, Piyush Gupta, mentioned that Partior will be supported by blockchain technology. The existence of smart contracts too will serve as an advantage in the realization of a better cross-border payment solution.
Both institutions involved in the collaboration have made different forays into the crypto space. Last year, DBS founded a crypto exchange that supported major cryptocurrencies, and JPMorgan has been making plans for some time to launch a Bitcoin fund.