JPMorgan uses blockchain for 24/7 dollar transfers with Indian banks

Global financial services company JPMorgan continues to explore the benefits of blockchain, deploying the technology to eliminate some of the barriers to traditional finance.

The banking giant has partnered with six major Indian banks to introduce a blockchain-based platform enabling interbank settlement of US dollar transactions, Bloomberg. informed of On 5 June.

Participating banks include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank and JP Morgan’s own banking unit in Gujarat International Finance Tech-City or GIFT City.

Kaustubh Kulkarni, senior country officer at JP Morgan, said the blockchain project aims to expand the capacity of existing settlement systems. According to the executive, the platform will allow banks to process instant transactions 24 hours a day, seven days a week.

Under the current interbank settlement system, transactions can take several hours. Additionally, settlement is not available on Saturdays, Sundays or public holidays. JPMorgan’s blockchain pilot will remove this hurdle, Kulkarni claimed, stating:

“By leveraging blockchain technology to facilitate transactions on a 24×7 basis, processing is instantaneous and GIFT City enables banks to support their own time-zones and operating hours.”

The initiative is aimed at helping New Delhi position GIFT City as an alternative business hub to Singapore and Dubai, the report said.

According to Kulkarni, JP Morgan will run a pilot project over the next few months to analyze the experience of banks. The pilot project, using JP Morgan’s blockchain platform Onyx, will be launched on Monday following approval from the International Financial Services Centers Authority.

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As previously reported, JP Morgan launched its Onyx blockchain-based platform in 2020 with the aim of improving the quality of wholesale payment transactions. allegedly bank processed About $700 billion of short-term loan transactions through Onyx by April 2023.

The news comes amid JPMorgan currency strategists pointing to some signs of looming de-dollarization. “De-dollarization is evident in FX (foreign exchange) reserves where the share of the dollar as a share in exports has fallen to record lows, but is still emerging in commodities,” strategist Said,

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