Key Takeaways

• Partior is a digital multi-currency payments network to enhance transparency and real-time processing of cross border wholesale banking transactions. It is a blockchain-based platform for payments, trade and foreign exchange settlement. It is an Open Industry Platform built on the Ethereum-based ConsenSys Quorum block chain to provide more efficient digital clearing and settlement solutions across the banking industry.
• Partior is in the process of regulatory approval through Monetary Authority of Singapore and is expected to launch in third quarter of 2021 for Singapore Dollar and United States Dollar payments within Singapore.
• South East Asia digital payments' industry is projected to grow to US$1.2 trillion by 2025 with remittance flows also expected to rise to US$35 million in 2025 from US$15 billion in 2020. DBS is expected to hold 33% in Partior subject to regulatory approval and intends to commercialize the technology and earn licensing royalties.
• Onyx by J.P. Morgan is a business unit and a new model for innovation in financial systems for the last 5 years since 2015. It is dedicated to building next generation payment capabilities in the financial services' industry through innovation and cutting-edge technology such as block chain that delivers a better, faster and more inclusive financial system.
• Onyx took part in Project Ubin and has developed blockchain-based platforms such as Quorum, Dromaius, JPM Coin and Liink between 2015 and 2020.

Introduction

Onyx

• Onyx by J.P. Morgan is a business unit and a new model for innovation in financial systems for the last 5 years since 2015. It is dedicated to building next generation payment capabilities in the financial services' industry through innovation and cutting-edge technology such as block chain that delivers a better, faster and more inclusive financial system.
• Onyx strengthens and expands J.P. Morgan's Wholesale Payments platform to provide clients with best-in-class platforms as their business models and banking needs evolve over time. It focuses on building next generation platforms and groundbreaking applications that solve complex challenges and create new opportunities.
• In 2016, Onyx established Quorum, the first block chain protocol to be open-sourced by a bank, freely available for use and transparent for third-party vetting. Quorum is an enterprise-variant of the Ethereum block chain.
• In collaboration with the Monetary Authority of Singapore, Onyx developed a prototype that enables payments in different currencies on the same block chain network. In 2016, Project Ubin, a 5-phased project over 5 years kicked off to explore the use of Blockchain and Distributed Ledger Technology for clearing and settlement of payments and securities. It aimed at solving the challenges faced by the financial industry and understanding the potential of block chain application to payments and settlements.
• In 2018, Onyx demonstrated Dromaius, a blockchain-based prototype for capital markets. Onyx simulated the issuance and transfer of debt securities to demonstrate the potential for distributed ledger technology enabling multiparty automated settlement and shared ledger calculation of interest payments. The blockchain-based platform is designed to streamline operations and make the experience of issuing a financial instrument more seamless and simplified. The project is still underway.
• In 2019, Onyx unveiled the JPM Coin which enables deposit accounts on a block chain ledger. Onyx designed a network to facilitate instantaneous payments using block chain technology enabling 24/7 business to business money circulation. JPM Coin is a permissioned, shared ledger system that serves as a payment rail and deposit account ledger enabling participating clients to transfer US Dollars held on deposit with J.P. Morgan. It facilitates real-time value movement solving common pain points of traditional cross-border payments and simplifying its clients’ money moving needs.
• In 2020, Onyx launched Liink, the first production-grade, scalable, peer-to-peer blockchain-based network. It was originally known as Interbank Information Network and launched as a pilot in 2017. It is a network where participants can access a growing collection of applications that can help improve common transaction, trade and information flows. It enables financial institutions and corporate users to make secure, peer-to-peer data transfers with greater speed and control by creating new ways to transfer data. It is a more open and efficient network of information sharing, comprised of many of the largest financial institutions in the world.
• The leadership team at Onyx includes the following:
• Umar Farooq is the Chief Executive Officer, Onyx. Prior to this current role, he was the Head of Digital Treasury Services and Head of Blockchain for the Corporate and Investment Bank. He has also served as the Head of CIB Fintech and the CFO for Technology, Operations, and Controls. He joined JP Morgan Chase in 2009.
• Christine Moy is the Global Head of Liink, Onyx. Previously, she held the position of Executive Director and the Global Head of Blockchain Center of Excellence. She joined J.P. Morgan more than 17 years ago and is one of the founding members of J.P. Morgan’s block chain program.
• John Hunter is the Founder of Liink. He is also the Managing Director of JP Morgan's Global Clearing. He has worked in cash management and payments services for over 25 years.
• Naveen Mallela is the Global Head of Coin Systems, Onyx. Naveen led Digital and Treasury Services for APAC. Before J.P. Morgan he was the APAC Head of Financial Services consulting practice for Infosys Lodestone.
• Jason Tiede Global is the Global Head of Business Development, Onyx . Previously he held the position of Managing Director, and Global Head of FinTech and Wholesale Payments at J.P. Morgan.

Partior

• Partior is a digital multi-currency payments network to enhance transparency and real-time processing of cross border wholesale banking transactions. It is a blockchain-based platform for payments, trade and foreign exchange settlement. It leverages on block chain technology and digitizes commercial bank money.
• It is an open platform built on the Ethereum-based ConsenSys Quorum block chain to provide more efficient digital clearing and settlement solutions across the banking industry.
• Current cross-border payments and settlements are constrained by a T+2 problem as payments are passed from bank to bank. This creates massive inefficiencies and pain points which can change through leveraging on block chain technology in payments and settlements. Partior recognizes the need for more efficient digital clearing and settlement solutions and targets to address these challenges through block chain solutions.
• It will enable programmable value transfer to participating banks and their clients in real-time across a common and open platform. Fiat money is converted into digital currency that has been cleared and sent across for settlement if certain laid down conditions have been met. The platform not only removes the latency of the process but also creates the capacity to program instructions.
• The application of payments network include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency denominated securities, as well as integration with other blockchain-based platforms.
• Partior was born out of Project Ubin, a 5-phased project over 5 years aimed at solving the challenges faced by the financial industry and the block chain ecosystem. It involved the practical experimentation on block chain technology within the industry and understanding its potential application to payments and settlements.

 

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• Partior aims to provide 24/7 infrastructure to support use cases such as FX Payment Versus Payment, Delivery Versus Payment, Peer-to-Peer escrows and complementary services for Central Bank Digital Currencies. The open platform will enable banks to provide real-time cross-border multi-currency payments, trade finance, foreign exchange and DVP securities settlements.
• Partior’s launch is subject to regulatory consents and approvals. As at March, 2021, the joint venture was in the process of regulatory approval through Monetary Authority of Singapore. It is expected to launch as an Open Industry Platform in third quarter of 2021 for Singapore Dollar and United States Dollar payments within Singapore. DBS is in discussions with core settlement banks to add other currencies such as Japanese Yen, Euro and RenMinBi.
• South East Asia digital payments industry is projected to grow to US$1.2 trillion by 2025 with remittance flows also expected to rise to US$35 million in 2025 from US$15 billion in 2020. DBS is expected to hold 33% in Partior subject to regulatory approval and intends to commercialize the technology and earn licensing royalties. DBS Remit platform which allows execution of cross-border payments in real-time generates over $100 million a year.
• Based on the various sources of information and data, the leadership team in the joint venture includes the following:
• Piyush Gupta is the Chief Executive Officer and Director, DBS Group since 2009. Prior to joining DBS, Piyush had a 27 year career at Citigroup where was Chief Executive Officer for South East Asia, Australia and New Zealand.
• Han Kwee Juan is the Managing Director and Group Head of Strategy & Planning, DBS Bank. Prior to joining DBS, he was Chief Executive Officer and a Board Member of Citibank Singapore Limited (CSL). He spent 27 years at Citibank.
• Chia Song Hwee is the Deputy Chief Executive Officer, Temasek International. He joined Temasek in October 2011. Prior to Temasek, he was the Chief Operating Officer at Global Foundries. He also served as Director of the Board, and President and CEO of Chartered Semiconductor Manufacturing from 2002 to 2009.
• Takis Georgakopoulos is the Global Head of Wholesale Payments, J.P. Morgan's Corporate & Investment Bank and a member of the firm’s Operating Committee. Prior to this role, he served as the Head of Strategy and Chief of Staff - Corporate & Investment Bank, Chief Financial Officer - J.P. Morgan’s Global Corporate Bank, Global Head of Coverage for Multinational clients and Head of Corporate Strategy.
• Sopnendu Mohanty is the Chief FinTech Officer at the Monetary Authority of Singapore. Prior to joining MAS, he was with Citibank as their Global Head of the Consumer Lab Network and Programs.

Research Strategy