JP Morgan has teamed up with 6 Indian Banks to settle the US dollar interbank transaction using blockchain technology. The idea is to make the existing transaction system more fast and efficient. The existing system takes days to settle the interbank transaction.
With the help of JP Morgan’s blockchain-based trading platform called Oynx, the transaction will be settled in real-time.
The company has said that it will run the pilot project for months to know the bank’s experience. For this pilot project, the company will collaborate with 6 Indian banks which include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPM’s banking unit in Gujarat, India.
The government of India is also promoting the Gujrat International Fintech City or the GIFT City as an alternative global financial hub to Dubai and Singapore.
The company’s trading platform Oynx established in 2020 is the company’s digital asset network for making payments in wholesale transactions.
We are witnessing that emerging economies are integrating blockchain technology in various ways. Especially it has been used in transforming the financial and banking sectors.
The government is slowly but gradually introducing a regulatory environment for blockchain and cryptocurrency. Collaborative efforts including the government, private sector entities, and International Organizations are important for the successful implementation.