JPMorgan Chase & Co. (NYSE:JPM) is set to pioneer a pioneering initiative in India, partnering with major local banks to implement a blockchain-oriented platform that aims to streamline interbank dollar transactions in the country’s burgeoning international financial center.
Kaustubh KulkarniJPMorgan’s Senior Country Officer for India and Vice President for Asia Pacific told Bloomberg in an interview, “In the coming months, we will be spearheading a pilot project to gain insight into banks’ experiences with this cutting-edge technology.”
The prestigious list of Indian financial institutions collaborating on this project includes HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd. and IndusInd Bank Ltdsupplemented by JPMorgan’s own unit stationed in GIFT City.
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This strategic maneuver bolsters New Delhi’s ambitious endeavors to propel the Gujarat International Finance Tec-City (GIFT City) into the limelight as a competitive alternative to trade giants Singapore and Dubai.
In support of this objective, the Reserve Bank of India has inaugurated a domestic non-deliverable futures market, denominated in dollars, within GIFT City.
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The existing settlement system has certain time constraints, which often take several hours to complete settlement and remain inactive on weekends and public holidays.
With the implementation of the real-time blockchain system, these barriers will be dissolved, enabling round-the-clock operations.
“The adaptation of blockchain technology accelerates transactions that can be processed instantly, allowing banks in GIFT City to adapt to their specific time zone and business hours,” Kulkarni said.
The pilot project is due to start on Monday, pending approval from the International Financial Services Center Authority.
It will exploit OnyxJPMorgan’s blockchain platform built for wholesale payment transactions, launched in 2020.
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