JPMorgan To Allow Indian Banks Trade Dollar Through Blockchain

Jai Pratap
June 5, 2023
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JPMorgan

The American multinational financial giant JPMorgan Chase and Co. has partnered with six Indian banks to launch a blockchain-based platform to settle interbank dollar transactions.

The move further aims to push New Delhi’s attempt to position the Gujarat International Finance Tec-City, or GIFT City, which aims to compete with other major international financial centers such as Singapore, Hong Kong, Abu Dhabi Global Market (ADGM) and Dubai’s IFC.

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JPMorgan to run a pilot project with Indian banks

Kaustubh Kulkarni, senior country officer, India and vice chairman, Asia Pacific at JPMorgan, said in an interview that they will be running a pilot project for the next few months as they need to analyze banks’ experience. The banks include top private lenders like HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd. and IndusInd Bank Ltd, in addition to JPMorgan’s own banking unit at GIFT City, he added.

The banking giant aims to utilize blockchain for faster and more efficient interbank dollar transactions. Currently, with the existing settlement systems, it takes about a few hours for the settlement to complete transactions. But with blockchain, these transactions could be done almost instantaneously.

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The pilot project will use JPMorgan’s blockchain platform Onyx

JPMorgan aims to leverage blockchain technology to facilitate transactions on a 24×7 basis, processing instantaneously and enabling GIFT City banks to support their own time-zone and operating hours, Kulkarni revealed.

The pilot project is scheduled to launch on Monday, using JPMorgan’s blockchain platform Onyx, after approval from the International Financial Services Center Authority. Onyx, JPMorgan’s blockchain-based platform for wholesale payment transactions, was formed in 2020. JPMorgan is not the only major bank to open itself to the GIFT City, several international systemic banks opened up shop in the center, including ,Deutsche Bank and MUFG.

Read More: Bloomberg Analyst Predicts Major Crypto Market Crash Soon

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you'll find him reading Russian literature or watching some Swedish movie.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.