Blockchain
JPMorgan Chase & Co has teamed up with six Indian banks to introduce a blockchain-based platform in GIFT City, India’s newest international financial center. This development is expected to significantly boost New Delhi’s efforts to position GIFT City as an alternative trading hub to Singapore and Dubai.
The Reserve Bank of India has already launched a domestic dollar-settled non-deliverable futures market at GIFT City. However, the existing settlement system can take several hours to complete, and transactions are not settled on weekends or holidays. This new real-time blockchain-backed system will remove these barriers and make the settlement available 24×7.
Using blockchain technology to facilitate transactions, processing will be instant, allowing GIFT City banks to support their time zone and business hours. The pilot project uses JPMorgan’s blockchain platform, Onyx, which was established in 2020 for large-scale payment transactions.
This partnership between JPMorgan and the six Indian banks will lead to a faster, cheaper and more secure way to settle interbank dollar transactions. This will benefit banks and customers alike, as the system is expected to provide a seamless, near-instantaneous settlement process that is available 24 hours a day.
The introduction of this blockchain-based platform is an important milestone in the financial industry as it marks a shift towards a more efficient and secure way to transact. This is expected to pave the way for more such collaborations in the future and may even lead to the adoption of blockchain technology in other financial sectors.
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