JPMorgan Chase and Co., a multinational financial giant in the United States, has partnered with six Indian banks to introduce a blockchain-based platform for settling interbank dollar transactions.

This collaboration is part of New Delhi’s efforts to promote the Gujarat International Finance Tec-City (GIFT City) as a competitive international financial hub, rivaling centers such as Singapore, Hong Kong, Abu Dhabi Global Market (ADGM), and Dubai’s IFC.

JPMorgan to pilot project with Indian banks

JPMorgan’s principal country officer for India and vice chairman for Asia Pacific, Kaustubh Kulkarni, stated in an interview that they will be conducting a pilot project for the next few months in order to assess the experience of banks. The participating banks include prominent private lenders like HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd., IndusInd Bank Ltd., and JPMorgan’s own banking unit at GIFT City.

This initiative aims to leverage blockchain technology for faster and more efficient interbank dollar transactions. Traditional settlement systems take several hours to complete transactions, but with blockchain, these transactions can be executed almost instantly.

The pilot project will utilize JPMorgan’s Onyx blockchain platform

By employing blockchain, JPMorgan aims to enable 24/7 transaction processing, allowing GIFT City banks to accommodate their time zones and operating hours.

Subject to approval from the International Financial Services Center Authority, the pilot project is scheduled to commence on Monday. Onyx, established in 2020, serves as JPMorgan’s blockchain-based platform for wholesale payment transactions. Other major banks, including Deutsche Bank and MUFG, have also established a presence in GIFT City, demonstrating their interest in the center.