Home » The global ambitions of Partior, the JP Morgan, DBS blockchain payment system – Ledger Insights

The global ambitions of Partior, the JP Morgan, DBS blockchain payment system – Ledger Insights

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partitionBlockchain-powered platform for “value exchange” by JP Morgan, DBS Bank, and Temasek announced Singapore a year ago. 2 weeks ago Joined Standard Chartered as a supporter. Partior is an interbank network that supports multi-currency payments starting with US Dollar and Singapore Dollar, and now he has 6 more currencies onboard. A year later, the company’s global ambitions are clear.

global ambitions

According to CEO Jason Thompson, the overriding goal is to “build a publicly available platform that can support and extend the global ledger.” Partior says he does business with 60 banks across 15 jurisdictions, and when we spoke to Ledger Insights, Thompson was in London for negotiations with the Bank of England and others. Currently, he is hiring in five major financial centers around the world.

“One or two of our industry peers have positioned us as their boutique network in Asia,” says Thompson. “It would be strange if an Asian boutique network had the world’s largest Western bank.”

Partior started with one clearing bank per currency, but has now evolved into multiple clearing banks. Currently GBP, EUR, AUD, JPY, CNH, HKD are onboarded.

Beyond scaling to currencies and more banks, Partior is adding additional services. Currently working on FX PvP, daytime swap. Then comes delivery-to-payment (DvP) integration with digital asset networks and all the interoperability associated with it.

A clear strategy reminiscent of SWIFT

Many new infrastructures profess to be the next SWIFT for digital assets or payments. Partior makes no such claims. But if you look at that strategy, it looks like his SWIFT which is more agile, more open and interoperable.

Its COO, Stella Lim, is from SWIFT.partitionPosition yourself as a network, not payments or payments settlement system. Partior is a wholesale network, but it also supports other networks that add retail payment applications to its network.

“Partior is not a payment system,” says Thompson. “We cannot instigate transactions, move them, store money or create finality, nor do we get any data.”

This means that, like SWIFT, neither a central bank account nor direct central bank approval is required, although commercial banks may need approval from regulators to use the network. This point is important because the Partior can move very fast.

Banks have nodes on the network for making payments, which they control. They own the smart contract, control deployment, initiate payments, and determine finality. Payment is commercial bank money.

The fact that Partior is derived from the central bank digital currency (CBDC) experimental project Ubin means that the possibility of central banks having nodes clearly exists.

Thompson said Partior “does not centralize risk in any way: technology risk, data risk, or financial.”

Other interbank payment networks

Comparing Partior’s strategy to one of the other big blockchain payment initiatives: FinalityA convenient service supported by 17 major financial institutions.

In the case of Fnality, it has not yet launched, but has already been designated as a structured payment system by the UK Treasury. And its start was delayed by nine months, at least in part due to the Bank of England, the payments regulator.

Compared to Partior’s commercial money payments, Fnality’s payments are all central bank money. The Fnality Payments Coin is backed by central bank funds, making it a synthetic CBDC. This significantly reduces counterparty risk, but does not eliminate it 100%.

However, going back to the CBDC point, Thompson believes Partior supports both commercial bank money (M1) and central bank money (M0). “M0 is the clearing function across settlement banks, and M1 is the clearing function within commercial banks and their ecosystems,” he said. So commercial money is just the starting point for Partior. “We can do it (payments) in M0 or M1 currency. It’s not a problem for us,” Thompson added.

Partior already works with multiple central banks.it is involved in dunbar plan, Multi CBDC Projects with the Central Banks of Singapore, Malaysia, Australia and South Africa and the BIS Innovation Hub. Thompson’s trip to London is also linked in part to another BIS innovation hub initiative, Project Meridian, which he said aims to synchronize RTGS infrastructure with digital asset registers and foreign currency payment systems. I’m guessing.

Make no mistake, your payment has been suspended

fast wanted to participate in this new world of CBDC and started a trial. Collaborate with domestic CBDCs For cross-border payments. While it’s understandable to want to transform rather than destroy, its CBDC approach continued its current role of sending messages, not money, as we observed at the time of its announcement.

But the key innovation is blockchain payment It is the integration of the message with money and its movements. And the ability to have atomic transactions.

Thompson compares the payments sector to electric vehicles (EVs). “The way automobile power units have changed has disrupted everything, from supply chains to services, down to the methodology of selling cars,” he said. “The moment we changed the fuel in the pipe, everything changed.”

Similarly, today’s “fuel” is digital currency.

“You have to start from scratch and figure out how this new world works,” said Thompson. “Then we look at the new supply chain and what that supply chain looks like.”

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