JP Morgan Partners With Six Indian Banks To Use Its Blockchain Platform
JP Morgan, a prominent American bank, has formed a strategic alliance with six leading Indian banks to establish a blockchain platform for facilitating 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 utilized for commercial purposes, coinciding with the bank’s introduction of a dedicated division for blockchain projects.
The pilot project is scheduled to commence on Monday, May 5, utilizing JP Morgan’s Onyx Blockchain platform, following approval from the 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 Bharain.
These developments occur within a broader context where certain countries in the region are pursuing de-dollarization efforts. While bank representatives acknowledge this trend in foreign currency reserves, with a decline in the dollar’s share in relation to export participation, its impact on raw materials 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 notable strides in this domain. In 2017, JPMorgan launched its own blockchain platform called Quorum, which was built on the Ethereum network. Quorum was specifically designed 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 enhanced security, transparency, and faster transaction settlement times.