JPMorgan Chase and five Indian banks to test blockchain for international settlements

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The American financial concern JPMorgan Chase, together with five Indian banks, will test the Onyx blockchain platform for international settlements in US dollars.

Pilot Indian banks include HDFCBank, ICICI Bank, Axis Bank, Yes Bank and IndusInd Bank, as well as the local banking arm of JPMorgan. In an interview with Bloomberg, JPMorgan Asia-Pacific Chief Executive Kaustubh Kulkarni said that the pilot project should be completed in the next few months and provide data to analyze the experience of banks in using blockchain.

According to Kulkarni, thanks to the introduction of blockchainin international settlements, New Delhi could become a major center of innovation, rivaling Singapore and Dubai. With the current system of payments, interbank settlements can take several hours. In addition, there are delays in settlements on weekends and public holidays. Blockchain can solve this problem - payments are made around the clock in real time, said a JPMorgan top manager.

Testing will be done usingblockchain platform JPMorgan Onyx after approval by the International Center for Financial Services Management. The Onyx platform was created by JPMorgan in 2020 to conduct bulk payment transactions.

In 2021, JPMorgan Chase announcedcooperation with the Central Bank of Bahrain and the Arab Banking Corporation BSC (Bank ABC) to launch a similar blockchain testing project for international settlements.

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