JPMorgan and 6 Indian Banks to Settle Dollar Trades on Onyx Blockchain System – According to Bloomberg’s report, JPMorgan (JPM) has partnered with six Indian banks to conduct interbank dollar transactions on its blockchain-based trading platform called Onyx.
This project aims to settle these transactions in real time, 24/7, instead of taking days and being limited to the working week. Over the next few months, JPMorgan will be running a pilot project in collaboration with HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPM’s own banking unit in Gujurat, India.
Onyx, established in 2020, serves as JPMorgan’s digital assets network for settling wholesale payment transactions. JPMorgan’s collaborative project with six Indian banks to settle interbank dollar transactions on the Onyx blockchain-based trading platform has selected the Gujurat International Finance Tec-City (GIFT City) as its headquarters.
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GIFT City is an ambitious initiative by the Indian government to create a world-class international financial center, aiming to compete with established hubs such as Singapore and Dubai. By choosing GIFT City as the project’s headquarters, JPMorgan and its partners are strategically positioning themselves within an emerging financial ecosystem that offers a conducive environment for innovation and growth.
GIFT City provides a range of benefits, including a robust regulatory framework, advanced infrastructure, and favorable business policies, all of which are crucial for fostering a thriving financial services sector. This collaboration signifies JPMorgan’s commitment to exploring new avenues and leveraging blockchain technology to revolutionize the settlement process for interbank dollar trades.
By conducting a pilot project involving HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan’s own banking unit in Gujurat, India, the aim is to transform the traditional settlement timeline.
Rather than relying on a matter of days and only during the working week, the project strives to achieve real-time settlement around the clock. The Onyx platform, established by JPMorgan in 2020, serves as the digital assets network for settling wholesale payment transactions.
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Through its blockchain technology, Onyx aims to enhance the speed, efficiency, and security of financial transactions, ultimately revolutionizing the way interbank dollar trades are settled. The pilot project will enable the consortium to test and refine the platform’s capabilities in a live environment, paving the way for wider adoption in the future.
