Investment banking giant JP Morgan Chase is planning to expand an existing blockchain project to fend off pressure from growing payment companies as for example TransferWise and Ripple.

Blockchain-based Interbank Information Network (IIN), set up in partnership with Australia's ANZ bank and the Royal Bank of Canada, currently enables its 220 members to solve problems with payments that contain errors fast. In today's banking structures is very common that solving of such situations can take up to several weeks.

Financial institutions are well aware of blockchain's potential and the biggest added value for them is transaction speed. Nowadays, it is unsustainable and there isn't any reason financial clearing should take more than just a couple of seconds, up to a few minutes.

According to John Hunter, head of global clearing at JP Morgan, the IIN is experiencing a rapid growth these days and its potential lies in further clearing functionalities development. For instance, real-time verification that a transaction is being sent to a valid account will save much needless worries in the case of a rejected payment. Hunter also suggests that solving of similar situations works like in the last century and therefore they make efforts to upgrade this area.

The settlement system will be live by Q3 2019.