- State Bank of India has partnered with JP Morgan chase India to join its Liink network
- With the partnership, JP Morgan is willing to expand its blockchain network’s presence in India
- Blockchain technology will help the Indian bank to improve cross-border payment operations
JP Morgan offers a blockchain payments network entitled Liink. Recently, the State Bank of India (SBI), a major Indian bank owned by the Government of India, has joined the Liink blockchain network. According to a report in The Economic Times, it is revealed that the bank is seeking to improve cross-border payments with the blockchain solution. Moreover, SBI became the first Indian bank that will be going live on the network by partnering with firm.
JP Morgan has plans to expand its blockchain network
Liink, the P2P network ecosystem, operates under the umbrella of the blockchain network of JP Morgan. It is known that the network has already enlisted more than 400 financial institutions and corporations from near 78 countries. The network also includes 27 among the top banks of the world. According to Prabdev Singh, the managing director at JP Morgan Chase and Co India, the firm’s latest partnership comes with plans to expand its blockchain presence in the country.
How will the Liink network help SBI?
The tie-up of State Bank of India with JP Morgan is expected to improve cross-border payments with blockchain solutions. Moreover, blockchain technology will help SBI to reduce transaction costs and time taken for payments.
According to The Economic Times sources, currently, it takes up to a fortnight to complete cross-border payments. However, with the integration of blockchain technology, such time taken for cross-border trade will be reduced to a few hours. Indeed, the fact will help cross-border payments to reach beneficiaries faster with little steps. According to Venkat Nageswar, the deputy Managing Director of SBI, to create real value to its daily operations, the bank will continue adding new technologies.
Banks are embracing the blockchain clearance system
Several banks around the world are now being observed joining blockchain clearance systems for cross-border transactions. The reason behind embracing the technology is to achieve the first-mover advantage and make such payments faster and cheaper. Indeed, technology is getting important as the World Bank has confirmed that bank-led remittances cost a high average percentage. However, it is also found that two Indian private lenders are also in talks with JP Morgan with the SBI.
