JPMorgan Partners With DBS and Temasek To Develop Blockchain-Based Payment Platform

JPMorgan (JPM), DBS Group Holdings, and Temasek Holdings are joining forces to establish a platform that will transform and enhance interbank value movements. The open platform will utilize blockchain technology to digitize “M1 commercial bank money”. The ultimate goal is to reduce current frictions and enhance cross-border transactions.

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Partior is the name of the company that will come into being as a result of the collaboration. It will be focused on creating efficient digital clearing and payment solutions. The idea is to develop an open industry platform that addresses all the issues that derail fast payments in the banking industry.

Partior is also expected to develop a wholesale payment system that digitizes ‘commercial bank money’. The platform will enable instant settlement across various financial transactions.

“After five years of being a partner in Project Ubin, we are thrilled by the launch of Partior as it marks yet another milestone for J.P. Morgan and the industry – blockchain-based wholesale payments infrastructure where information and value can change hands around the world in a 24/7, frictionless way,” stated Takis Georgakopoulos, Global Head of Wholesale Payments at JPMorgan.

Partior will provide the much-needed instantaneous payment settling services upon securing regulatory consents and approvals. The company will also provide the infrastructure that financial institutions and developers can use to create applications. Some of the use cases that the platform could support include value-add to financial ecosystems and Peer to Peer escrows. (See JPMorgan stock analysis on TipRanks)

Yesterday, Atlantic Equities analyst John Heagerty downgraded JPM to a Hold from a Buy. The analyst has a $150 price target, implying 1.3% downside potential to current levels.

However, Wall Street analysts are cautiously optimistic on JPM’s prospects with a Moderate Buy consensus rating based on 10 Buys, 5 Holds, and 1 Sell. The average analyst price target of $166.71 implies upside potential of about 10% to current levels.

JPM scores 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that its performance is likely to align with market expectations.