JP Morgan Teams Up with 6 Indian Banks for Blockchain Settlement

JPMorgan, one of the world's leading investment banks, has formed a partnership with six major Indian banks to revolutionize interbank dollar transactions using blockchain technology.

The collaborative project, scheduled to launch this week, will include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan's own banking unit in Gujarat, India.

The primary goal of this pioneering initiative is to facilitate real-time settlement of dollar trades, eliminating the traditional lengthy processing times that often span several days and are confined to working week hours. By leveraging JPMorgan's blockchain-based trading platform called Onyx, the participating banks aim to streamline and expedite transaction processes.

The project's headquarters will be situated at the Gujarat International Finance Tec-City (GIFT City), a strategic effort to establish an international finance hub that can rival renowned financial centres like Singapore and Dubai.

Onyx, introduced in 2020, serves as JPMorgan's digital assets network specifically tailored for wholesale payment transactions. It has played a crucial role in developing the world's first bank-led blockchain platform, enabling the seamless exchange of value, information, and digital assets.

Looking ahead, the project has the potential to support foreign exchange transactions and facilitate settlements for tokenized assets. Despite recent market fluctuations and regulatory uncertainties in the cryptocurrency space, JP Morgan remains committed to tokenizing traditional financial assets. An estimated $700 billion have been processed in short-term loan transactions on their 'Onyx' digital assets platform. It is described Onyx as a "permissioned version of Ethereum," where the bank's customers can trade tokens representing ownership rights to US Treasuries and utilize blockchain-based bank accounts.

With this partnership, JP Morgan and the participating Indian banks are poised to revolutionize the way interbank dollar transactions are conducted, ushering in a new era of efficiency, transparency, and speed in the global financial system. This collaboration highlights the increasing adoption of blockchain technology by established financial institutions, setting the stage for transformative changes in the banking industry.

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