JP Morgan is partnering with six Indian banks to use the Blockchain platform
JP Morgan, a prominent US bank, has formed a strategic alliance with six leading Indian banks to establish a blockchain platform to facilitate interbank dollar transactions in India’s financial hub. The selected banks for this initiative include HDFCBank Ltd., ICICI Bank Ltd., Axis Bank Ltd., IndusInd Bank Ltd.and JPMorgan’s Indian banking unit.
Currently, the settlement process in India experiences delays lasting several hours, with no transactions taking place on weekends. However, the implementation of a real-time blockchain-based system will eliminate these obstacles and ensure uninterrupted availability, operating 24/7.
In related news, JPMorgan’s digital currency is now being used for commercial purposes, coinciding with the bank’s introduction of a dedicated department for blockchain projects.
The pilot project is scheduled to start on Monday 5 May, using JP Morgan’s Onyx Blockchain platform, after approval from International Financial Services Authority. This platform was developed by JPMorgan in 2020 and has already attracted Siemens as a major customer. Furthermore, it has undergone testing in collaboration with the central bank of Bahrain.
This development is taking place in a wider context where certain countries in the region are engaged in de-dollarization measures. While bank representatives acknowledge this trend in foreign exchange reserves, with a decline in the dollar’s share in relation to export participation, its impact on commodities remains relatively unaffected.
JP Morgan has a significant history with blockchain payment systems. The bank has been actively exploring the potential of blockchain technology for several years and has made remarkable progress in this area. In 2017, JPMorgan launched its own blockchain platform called Quorum, which was built on the Ethereum network. Quorum was specially developed to facilitate secure and efficient financial transactions.
Since then, JP Morgan has continued to invest in blockchain technology and explore its applications in various areas, including payment systems. The bank has recognized the potential benefits of blockchain, such as increased security, transparency and faster transaction settlement times.