JPMorgan has partnered with six Indian banks, including HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and its own banking unit in Gujurat, India, to settle interbank dollar transactions on its blockchain-based trading platform called Onyx. This collaboration, as reported by Bloomberg, aims to settle dollar trades in real time, 24 hours a day, throughout the week, instead of the usual settlement process that takes several days and is limited to working days.
The project, which commenced recently, will be conducted as a pilot over the upcoming months. Onyx, established in 2020, serves as JPMorgan’s digital assets network for facilitating wholesale payment transactions. The initiative is centered at the Gujurat International Finance Tec-City (GIFT City), an Indian development striving to establish an international finance hub comparable to global financial centers like Singapore and Dubai.
By leveraging blockchain technology, JPMorgan and the collaborating Indian banks seek to enhance the efficiency and speed of interbank dollar settlements. The traditional settlement process often involves intermediaries and manual procedures, leading to delays and potential errors. Real-time settlement on the Onyx blockchain system could streamline and automate the process, reducing costs and risks associated with interbank transactions.
This collaboration demonstrates JPMorgan’s commitment to leveraging blockchain technology for improving financial services, while also supporting India’s ambition to become a prominent player in the international finance sector. If successful, this pilot project could pave the way for broader adoption of blockchain-based settlement systems within the global banking industry.
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