JP Morgan Chase to patent blockchain-based interbank payments tech
JP Morgan Chase has filed an application to the US Patent and Trademark Office to patent an interbank payments system based on the distributed ledger technology (DLT).
The proposed system will record transactions using a peer-to-peer (P2P) network – creating “a unique system for recording transactions and storing data”, according to the bank. Another benefit is the ability to replicate that data using DLT across a public or private distribution network, it adds.
In its application, JP Morgan Chase explains:
“In one embodiment, a method for processing network payments using a distributed ledger may include:
- a payment originator initiating a payment instruction to a payment beneficiary;
- a payment originator bank posting and committing the payment instruction to a distributed ledger on a P2P network;
- the payment beneficiary bank posting and committing the payment instruction to the distributed ledger on a P2P network;
- the payment originator bank validating and processing the payment through a payment originator bank internal system and debiting an originator account.”
JP Morgan has already brought to market its own blockchain platform, Quorum, a permissioned-variant of the Ethereum blockchain.