JPMorgan has applied blockchain technology to streamline cross-border US dollar transactions with major Indian banks. The platform aims to provide near-instant settlements around the clock.
Expanding System Capacity Through Blockchain
JPMorgan has partnered with six major Indian banks including HDFC Bank, ICICI Bank and Axis Bank to launch a blockchain-based interbank settlement platform for US dollar transactions. The platform seeks to expand the capacity of the existing system by enabling 24/7 processing using blockchain.
Traditional interbank transactions in India can take hours to settle and are not available on weekends and holidays. JPMorgan’s blockchain pilot aims to remove these constraints by enabling instant settlements around the clock. This could help position the GIFT City in India as an alternative financial hub.
Testing the Blockchain Platform
JPMorgan will run a pilot for several months to test the banks’ experience with the platform. The pilot will launch on JPMorgan’s Onyx blockchain platform after regulatory approval. Onyx has been used to process around $700 billion in transactions since 2020. The news comes as JPMorgan strategists note signs of de-dollarization emerging. While the US dollar still dominates global reserves and export invoicing, its share is declining and the use of non-dollar currencies is growing for commodities.