In short: JPMorgan Chase has collaborated with Indian banks in Gujarat International Finance Tec-City (GIFT) City to develop a blockchain-based platform for interbank dollar transactions. HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, and IndusInd Bank are the Indian banks involved. The Indian government's strategy to enhance GIFT City's status into a competitive city like Singapore and Hong Kong is part of the initiative. A pilot project will be introduced in the next few months for JPMorgan and the banks to analyze the banks' experience.
Our quick analysis:
JPMorgan Chase & Co. has partnered with Indian banks in a new blockchain-based initiative to settle interbank dollar transactions. The move is part of the strategy of the Indian government to boost GIFT City to a level where it can match other world-renowned financial cities like Singapore. The partnership includes HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd., and IndusInd Bank Ltd.
Kaustubh Kulkarni, Senior Indian Officer and Vice Chairman of Asia Pacific at JPMorgan, said the parties will launch a pilot project over the next few months to work out any kinks in the system.
JPMorgan plans to use blockchain technology to restructure dollar transactions between financial institutions to be completed within seconds. Kulkarni says that with blockchain infrastructure, GIFT City banks will be able to maintain their own time zone and business hours, allowing for instant transactions around the clock.
JPMorgan’s pilot project will use the Onyx blockchain technology, the company's in-house platform for wholesale payment transactions, which was launched in 2020.
The Indian banking sector has been quick to embrace blockchain technology, recognizing its potential for secure and efficient transactions. The collaboration between JPMorgan and the Indian banks in GIFT City is a testament to the increasing importance of the technology in the financial world.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
JPMorgan Chase & Co. has partnered with Indian banks in a new blockchain-based initiative to settle interbank dollar transactions. The move is part of the strategy of the Indian government to boost GIFT City to a level where it can match other world-renowned financial cities like Singapore. The partnership includes HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd., and IndusInd Bank Ltd.
Kaustubh Kulkarni, Senior Indian Officer and Vice Chairman of Asia Pacific at JPMorgan, said the parties will launch a pilot project over the next few months to work out any kinks in the system.
JPMorgan plans to use blockchain technology to restructure dollar transactions between financial institutions to be completed within seconds. Kulkarni says that with blockchain infrastructure, GIFT City banks will be able to maintain their own time zone and business hours, allowing for instant transactions around the clock.
JPMorgan’s pilot project will use the Onyx blockchain technology, the company's in-house platform for wholesale payment transactions, which was launched in 2020.
The Indian banking sector has been quick to embrace blockchain technology, recognizing its potential for secure and efficient transactions. The collaboration between JPMorgan and the Indian banks in GIFT City is a testament to the increasing importance of the technology in the financial world.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
0 Comments
Please, behave!