Banking giant JP Morgan is continuing its expansion into blockchain by teaming up with six Indian financial institutions. The collaboration aims to establish a platform based on blockchain technology, which will enable instant settlement of interbank dollar transactions.
JP Morgan and Indian banks collaborate on a pilot project
According to an article published by Bloomberg on June 5, 2023, JP Morgan has teamed up with six Indian banks to run a pilot project over the coming months. The aim of the partnership is to analyze banks’ experience when using JP Morgan’s Onyx blockchain-based platform for the settlement of interbank dollar transactions. The banks involved are:
- HDFC Bank Ltd.
- ICICI Bank Ltd.
- Axis Bank Ltd.
- Yes Bank Ltd.
- IndusInd Bank Ltd.
- JP Morgan’s local subsidiary in India
Onyx, a blockchain solution already adopted by big names
The Onyx blockchain platform was launched at the end of 2020 by JP Morgan and has already won over major companies such as BNP Paribas and Siemens. In particular, this system enables instant, secure transactions thanks to blockchain technology.
Undeniable advantages for Indian banks
The use of the Onyx blockchain by Indian banks should bring them several benefits, including:
- A reduction in the cost of settling interbank transactions in dollars
- More efficient processing of financial transactions
- Greater transparency and better monitoring of transactions
- Better security thanks to blockchain technology
Another step towards the democratization of blockchain
This alliance between JP Morgan and Indian banks testifies to the growing willingness of financial institutions to integrate blockchain technology into their services. Indeed, its adoption could help transform the banking sector, facilitating international exchanges and guaranteeing greater security for users.
Development of Gujarat International Finance Tec-City (GIFT)
In addition to strengthening collaboration between JP Morgan and Indian banks, this initiative is also part of the development of Gujarat International Finance Tec-City (GIFT). This is a project supported by the Indian government to create a globally competitive financial center.
- GIFT is set to rival financial centers such as Singapore, Hong Kong and the Abu Dhabi Global Market.
- The introduction of a blockchain-based system is a further step towards making this ambitious project a reality.
A positive impact on the Indian economy
In addition to the benefits for banks and users, the integration of blockchain technology into India’s financial sector could also have a positive impact on the country’s economy. By facilitating international trade and attracting foreign investors, this initiative could contribute to India’s economic development.
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