JPMorgan teams up with six Indian banks to build a blockchain-based platform

  • The blockchain-based platform aims to settle dollar transactions between banks.
  • The move is part of the Indian government’s strategy to elevate GIFT City to a city federation like Singapore.
  • The parties plan to launch a pilot project over the next few months to analyze the bank’s experience.

US multinational financial giant JPMorgan Chase has partnered with an Indian bank to build a blockchain-based platform for clearing dollar transactions between banks.

Indian banks involved are based in Gujarat International Financial Tech City (GIFT) City and include HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd. and IndusInd Bank Ltd. .

Increase Gift City status

Although this is a partnership within the private sector, the move is part of the Indian government’s strategy to bring Gift City to a level where it can compete with the likes of Hong Kong, Singapore and Dubai’s International Financial Centers (IFCs). Abu Dhabi Global Market (ADGM).

Kaustub Kulkarni, a senior India executive at JP Morgan and vice-chairman for Asia Pacific, said JP Morgan will launch a pilot project in the coming months to study the experience of banks.

JP Morgan and Blockchain Technology

JP Morgan also plans to use blockchain technology to restructure dollar transactions between financial institutions so that transactions can be completed in seconds.

Once JP Morgan builds a blockchain infrastructure that enables instant 24-hour trading, Kulkarni said Gift City banks will be able to maintain their own time zones and hours of operation.

JP Morgan’s pilot project using Onyx blockchain technology is already set to start on Monday after receiving approval from the Center for International Financial Services authorities. Onyx is a blockchain-based platform for wholesale payment transactions, launched by JPMorgan in 2020.

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