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Home / Blockchain / SBI Joins “Liink” – JP Morgan’s Blockchain Platform

SBI Joins “Liink” – JP Morgan’s Blockchain Platform

Published Thu, Feb 25 2021 17:10 pm
by Angitha Menon

Blockchain 4 (2)
 

Whether it is trade finance or supply-chain finance, banks are generally prudent on foreign money transactions when they have very few tools and data to initiate due diligence on fund recipients. As a result, it becomes rapidly cumbersome for exporters and importers to make cross-border payments to effectuate their purchase orders.

In this situation, the blockchain solution - Liink plays a crucial role. This platform allows the bank to communicate with parties with regard to KYC documents, business validation, identity, and due diligence reports. Liink helps in risk and fraud alleviation by pre-validating account details before making any transactions.

You may read: MOBI Releases the Second Iteration of Blockchain Vehicle Identity Ledger

State Bank of India (SBI) unites with JP Morgan's blockchain platform - "Liink" to expedite foreign and overseas transactions. The introduction of the country's prodigious bank to the global blockchain network run by the global banking giant means curtailed costs for transactions and meliorate speeds when it comes to settlements.

The time consumed to unravel cross-border payment-related inquiries can be tapered to a few hours from up to a fortnight. This will succor cross-border payments reach beneficiaries rapidly and use limited procedures. Nitin Sharma, the partner at Antler Group, stated that bank-led remittances could cost 10% globally, while blockchain obliterates the need for correspondent banking.

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According to Economic Times (ET), when Liink is affiliated with its operations, SBI will be able to reciprocate payment-related information with other financial institutions (FI) on the platform, and about 100 banks are now live on this network. Like numerous FinTechs and FIs, JP Morgan has been proliferating its interest and commitment in blockchain and currency. The bank initiated a business unit merely focusing on blockchain development - Onyx in October. Liink is now operating under Onyx.

You may read: Why Blockchain is Inevitable Technology?

Venkat Nageswar, Deputy MD - International Banking Group, SBI, quoted, "We have encountered crucial digital transformation in recent years and continue to add futuristic technologies to invent real value to daily operations. We are excited to be the 1st Indian bank to go live on the network and look forward to a closer partnership with JP Morgan to effectuate and explore application as part of this network to better serve our users."

JP Morgan plans to augment its blockchain presence in India. Managing director and head of corporates and FI at JP Morgan Chase Bank in India, PD Singh, stated that they would continue to scout how the prominent technologies will enhance our client's experience. Liink is adding the potential for its participating banks to legitimize accounts before making transactions to alleviate rejection and fraud transactions.

Liink is a peer-to-peer platform that allows FI, banks, corporates, and fintech firms to settle and transfer data internationally. By using this network, SBI & other banks can reciprocate secure data across a global network of institutions and banks with ease and pace. 380 banks that include SBI, ICIC Bank, Canara Bank, IndusInd Bank, Kotak Mahindra Bank, Federal Bank, Union Bank of India, and Yes Bank are on board, and several other private, government, and local lenders are also in discussion with JP Morgan for the same.

As per the information from blockchain adept, bank around the globe which includes lenders from Africa and China utilizes blockchain-based clearance method for cross-border transactions. Unlike other projects that deal with data flows & cross-border payments like Quorum or Corda by R3, Liink is not open-source even though JP Morgan is inviting FinTechs and other developers to join the network and develop applications on it.

Besides, JP Morgan also developed JP Coin in 2019, which enables instant payments. This coin is a shared ledger system that helps users to transfer US dollar deposits held by JP Morgan. Head of Liink - Christine Moy quoted that the platform is intended to complement and not to reinstate the system of Society for Worldwide Interbank Financial Telecommunications - SWIFT.

 

 

 

Image Source: Adobe Stock