Bank ABC of Bahrain Adopts JPMorgan's Blockchain Service for Cross-Border Payments
Summary:
Bank ABC, based in Bahrain, will utilize JPMorgan’s Onyx Coin Systems for blockchain-based cross-border transactions, aiming to make such payments more cost-effective and faster. Initially, the service will handle U.S. dollar transactions involving Bahrain, the U.S., the U.K., Singapore, and Hong Kong, with plans to include more locations and euro transactions. The service emerged after two years of testing and was developed in collaboration with the Central Bank of Bahrain.
Bank ABC, located in Bahrain, will adopt JPMorgan’s Onyx Coin Systems for its blockchain-anchored cross-border transactions in a limited, or 'soft', introduction. This advanced service will ensure both cost-savings and quicker reconciliation times in comparison to traditional methods. Initially, Bank ABC will conduct transactions using the US dollar between Bahrain, the United States, United Kingdom, Singapore, and Hong Kong. There is a plan to incorporate more locations and include euro transactions too. Additionally, programmable payments are on the agenda. This service materialized after two years of determined experimentation. Commenting on this development, Onyx Coin Systems' Global Head, Naveen Mallela, stated that this would enable rapid, precise, and verifiable cross-border commercial transactions between Bahrain and US corridors.
This innovative service was cultivated in active collaboration with Bahrain's Central Bank. Its initial trial supervised by the Central Bank took place in January 2022. During this trial, JPM Coin facilitated payments between Aluminium Bahrain, a national company, and its US counterparts through Bank ABC. Also featured in the statement was the fact that Bank ABC is the first Middle Eastern partner of JPMorgan's blockchain service. Earlier in the year, Onyx partnered with six Indian banks in a trial project for USD settlements. A partnership with the German giant, Siemens, also resulted in euro settlements. JPM Coin was introduced to the world in 2020. Bank ABC of Bahrain implemented JPMorgan's Blockchain payment system after two years of thorough testing.
Bahrain has been making progressive strides to update its financial architecture in the past years. In March 2022, Binance earned a license in the Kingdom, edging Dubai by a narrow margin to become the first Gulf Cooperation Council member to authorize an international crypto exchange. Binance allied with EazyPay to cater to retail payment services in Bahrain, even though it is uncertain if those services are still active.
Published At
9/26/2023 4:58:59 PM
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