JPMorgan, a global financial services company, is continuing its exploration of blockchain technology to overcome limitations in traditional finance. The company has partnered with six major Indian banks to introduce a blockchain-based platform for interbank settlement of U.S. dollar transactions.
The participating banks, including HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan’s own banking unit at Gujarat International Finance Tec-City (GIFT City), aim to enhance the existing settlement system’s capacity. With the blockchain platform, the banks will be able to process instant transactions 24/7, eliminating the time constraints of the current system, which could take several hours and is not available on weekends or public holidays.
JPMorgan’s initiative also intends to position GIFT City as an alternative trading center to Singapore and Dubai, further enhancing New Delhi’s standing. The pilot project will run for a few months, using JPMorgan’s blockchain platform Onyx, and will analyze the banks’ experience. The launch of the pilot project has received approval from the International Financial Services Center Authority.
JPMorgan had previously launched Onyx in 2020 to improve the quality of wholesale payment transactions. As of April 2023, the bank had reportedly processed nearly $700 billion in short-term loan transactions via the Onyx platform.
These developments occur as JPMorgan currency strategists highlight signs of emerging de-dollarization, particularly in foreign exchange reserves. While the dollar’s share has declined to a record low in FX reserves, the process of de-dollarization is still emerging in commodities, according to the strategists’ observations.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up