JPMorgan Chase is going to patent the blockchain system implementation and negotiation of financial transactions.
In a patent application published by the patent and trademark office on Thursday, JPMorgan described the system using distributed registers for check payments that are sent from one Bank to another using peer-to-peer network. The Bank believes that the use of this technology will provide “a unique system to record the transactions and store data”.
The application States that another advantage gives the possibility to duplicate the information in the registry through public or private distribution network.
“In one embodiment of use, a method of processing payments processing network using a distributed registry may include: (1) payment of the sender initiating payment instruction to the payee; (2) the Bank sender of the payment, recording and performing payment instruction on a distributed peer to peer network; (3) the beneficiary’s Bank, who also writes and performs payment instruction on a distributed peer-to-peer network; and (4) the Bank of the payment sender, validating and processing the payment through its internal system and performing debiting the sender’s account,” explains JPMorgan.
The Bank believes that the blockchain can improve existing systems, allowing to perform calculations in real time cheaper and faster than now. The application States:
“To implement cross-border payment from the payment organization to the payment between banks and accounting centers involved in the processing operations, it is necessary to send a number of messages. This often leads to slowing down your transaction because of possible delays in service due to correspondent banks, communications networks and clearing intermediaries in the flow of payments.”
It should be noted that this application which was originally submitted in October of last year, not only associated with JPMorgan bloccano project in the field of interbank payments. So, a few days before the filing of the patent application, the Bank launched a platform for this kind of services is built on a Quorum (the blockchain on the basis of Еthereum).
“The blockchain has allowed us to rethink how critical information can be collected and traded between global banks,” — said at the time Emma Loftus (Emma Loftus), head of international payments and foreign currency JPMorgan Treasury Services.