JPMorgan partners with 6 Indian banks for blockchain platform.
- A blockchain-based platform has been created to settle interbank dollar transactions.
- This is part of the Indian government’s plan to raise GIFT City’s status to be comparable with other major cities such as Singapore.
- A pilot project will be conducted in the next few months to analyze the banks’ experience.
JPMorgan Chase & Co., a large financial company, has partnered with Indian banks to create a blockchain-based platform to settle interbank dollar transactions.
The Indian banks involved in this project are located in the Gujarat International Finance Tec-City (GIFT) City, and include HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd., and IndusInd Bank Ltd.
Raising GIFT City’s status
Although this is a private sector partnership, it is part of the Indian government’s plan to raise GIFT City’s status so that it can compete with other major cities such as Hong Kong, Singapore, the International Financial Centre in Dubai, and the Abu Dhabi Global Market.
Kaustubh Kulkarni, a senior Indian officer and vice chairman of Asia Pacific at JPMorgan, has announced that the institution will conduct a pilot project in the coming months to analyze the banks’ experience.
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JPMorgan and blockchain technology
JPMorgan also plans to use blockchain technology to restructure dollar transactions between financial institutions so that the transactions can be completed in a matter of seconds.
According to Kulkarni, GIFT City banks would be able to maintain their own time zone and business hours once JPMorgan creates the blockchain infrastructure enabling instant transactions around the clock.
JPMorgan’s pilot project using the Onyx blockchain technology is set to begin on Monday after receiving clearance from the International Financial Services Centre Authority. Onyx is a blockchain-based platform for wholesale payment transactions that was launched by JPMorgan in 2020.