• JPMorgan Chase & Co is partnering with 6 Indian banks to launch blockchain-based platform for interbank dollar transactions in New Delhi’s trading center.
• The platform will be available 24/7 and will remove the need for manual intervention, which is expected to reduce settlement times and costs.
• JPMorgan’s blockchain platform Onyx was approved by the International Financial Services Center Authority and pilot project will be launched today (Monday, June 5).
JPMorgan Launches Blockchain-Based Settlement System
JPMorgan Chase & Co. is partnering with six Indian banks to launch a blockchain-based platform for settling interbank dollar transactions in New Delhi’s trading center. The platform will be available 24/7 and will remove the need for manual intervention, which is expected to reduce settlement times and costs.
New Delhi Establishing Trading Center
New Delhi is seeking to establish Gujarat International Finance Tec-City, also known as GIFT City, as a viable trading center alternative to Singapore and Dubai. To achieve this goal, the Reserve Bank of India has launched a domestic non-deliverable forward market settled in dollars at GIFT City, which is expected to boost its prospects.
Onyx Blockchain Platform
JPMorgan’s blockchain platform Onyx was created in 2020 and is a blockchain-based platform for wholesale payment transactions. After receiving approval from the International Financial Services Center Authority , today (Monday, June 5) marks the start of a pilot project using JPMorgan’s Onyx platform.
Benefits For Banks Participating In Pilot Program
Kaustubh Kulkarni, senior country officer, India, and vice chairman, Asia Pacific at JPMorgan said that leveraging blockchain technology facilitates instantaneous processing on a 24×7 basis allowing participating banks to support their own time-zone and operating hours. This pilot program should help analyze bank’s experience with this new system .
Conclusion
This new system should bring more efficiency when it comes to price settlement times while reducing costs associated with manual interventions needed previously .