• 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.
• JPMorgan’s blockchain platform Onyx has been approved by the International Financial Services Center Authority and will be launched on Monday, June 5th as a pilot project.
JPMorgan Launches Pilot Program for Blockchain Settlement System
JPMorgan Chase & Co. is launching a pilot program, approved by the International Financial Services Center Authority, that will enable a blockchain-based platform for settling interbank dollar transactions in New Delhi’s trading center. The new system seeks to reduce settlement times and costs by removing manual intervention and providing 24/7 availability.
Partnership With Six Indian Banks
The blockchain-based platform is being launched with the assistance of six Indian banks in order to help establish Gujarat International Finance Tec-City (GIFT City) as an alternative trading center to Singapore and Dubai. By leveraging blockchain technology, GIFT City banks can support their own time-zone and operating hours with instantaneous processing enabled by this technology.
JPMorgan’s Blockchain Platform Onyx
Created in 2020, JPMorgan’s blockchain platform Onyx was designed specifically for wholesale payment transactions; it will be used to facilitate these transactions on Monday, June 5th as part of the pilot project.
New Delhi’s Goal For GIFT City
New Delhi hopes that establishing GIFT City as an international financial hub could help increase foreign investment into India while reducing dependency on other countries such as Singapore or Dubai when it comes to financial services like banking or trade settlements. This new system could provide access to faster settlements at lower costs than traditional methods because of its 24/7 availability, eliminating manual intervention in favor of digital processes powered by blockchain technology.
Kaustubh Kulkarni On Pilot Project
Kaustubh Kulkarni, senior country officer at JPMorgan India and vice chairman of Asia Pacific stated: “We will be running a pilot project for the next few months as we need to analyze banks’ experience… By leveraging blockchain technology to facilitate transactions on a 24×7 basis, processing is instantaneous and enables GIFT City banks to support their own time-zone and operating hours.”