JPMorgan Chase, a leading financial services provider, has recently released an application – initially submitted to the US Patent and Trademark Office (USPTO) in October – which shapes the framework for a system which will use blockchain technology and peer-to-peer networks in order to record payments sent from one banking institution to another.
JPMorgan has said that the technology will provide “a unique system for recording transactions and storing data” and explains the benefits of using a distributed ledger because it “provides a practically immutable, verifiably true audit trail.”
The bank describes the summary of the invention proposed in the patent application, saying:
“In one embodiment, a method for processing network payments using a distributed ledger may include: (1) a payment originator initiating a payment instruction to a payment beneficiary; (2) a payment originator bank posting and committing the payment instruction to a distributed ledger on a peer-to-peer network; (3) the payment beneficiary bank posting and committing the payment instruction to the distributed ledger on a peer-to-peer network; and (4) the payment originator bank validating and processing the payment through a payment originator bank internal system and debiting an originator account.”
JPMorgan continues to outline that the “system for processing network payments using a distributed ledger” might include a number of entities such as “a payment originator bank; a payment beneficiary bank; a peer-to-peer payment network, wherein the payment originator bank and the payment beneficiary bank are participant members of the peer-to-peer payments network; and a distributed ledger.”
The banking institution has been a prominent name in its cryptocurrency dealings, whether because of banning purchases of virtual currencies through credit cards services, the scandalous pursuit of additional fees from its customers, or its CEO swallowing his opinion on cryptocurrency and the move to use blockchain technology in its systems is not an entirely surprising one.