Source: blockchain.news
JPMorgan Chase & Co., the American multinational investment bank, has formed an alliance with six Indian banks to inaugurate a blockchain-based platform that will handle interbank dollar transactions within the emerging International Financial Center of India. This development, initially reported by Bloomberg, shows the evolving landscape of financial technology (fintech) in India.
Kaustubh Kulkarni, a senior JPMorgan official in charge of India operations and vice president for the Asia-Pacific region, said the project will enter a pilot phase in the coming months. This period is crucial to gauge the experience and adaptability of participating banks, which include private sector entities such as HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd., IndusInd Bank Ltd. and also banking from JPMorgan. division in GIFT City.
Once it gets approval from the International Financial Services Center Authority, the pilot project will start next Monday, using JPMorgan-owned blockchain platform Onyx.
The current settlement system poses certain challenges, including possible delays that could extend to several hours for settlement completion. Also, currently transactions are not processed on Saturdays, Sundays or holidays. The introduction of a real-time blockchain-compliant system has the potential to remove these limitations, offering 24-hour transactional availability, a significant improvement in efficiency and convenience for the banking sector.
This pioneering initiative further boosts the efforts of the Indian government to establish Gujarat International Financial Tech City (GIFT City) as an influential business hub. It echoes the ambition to compete with well-known international hubs such as Singapore and Dubai, underscoring India’s commitment to becoming a major player in the global fintech arena.
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