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 payments 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's top manager for the Asia-Pacific region, Kaustubh Kulkarni, said that the pilot project should be completed in the next few months and provide data for analyzing banks' experience in using blockchain.

According to Kulkarni, thanks to the implementationblockchain into international payments, New Delhi has the potential to become a major center of innovation, on par with Singapore and Dubai. With the current payment system, interbank settlements can take several hours. In addition, there are also delays in settlements on weekends and public holidays. Blockchain can solve this problem - payments are made around the clock in real time, noted a top manager at JPMorgan.

Testing will take place usingJPMorgan Onyx blockchain platform after approval from the International Center for Financial Services Management. The Onyx platform was created by JPMorgan in 2020 to conduct wholesale payment transactions.

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