JPMorgan has recently introduced a blockchain-powered system for settling interbank dollar transactions in India’s GIFT City financial center. The platform will enable the clearance of INR-USD trades and will be accessible to six Indian banks. This initiative is an integral part of JPMorgan’s strategy to enhance its blockchain-based trading platform, Onyx, which aims to simplify cross-border payments and settlements. The introduction of this system marks a crucial achievement for JPMorgan as it expands its footprint in India.
JUST IN: JPMorgan and 6 Indian banks to test blockchain interbank dollar transaction settlement platform.
— Coingraph | News (@CoingraphNews) June 5, 2023
The company has also unveiled its International Banking Unit (IBU) in GIFT IFSC, which acts as India’s global financial center. The IBU will initially offer FX derivatives and subsequently broaden its portfolio to meet the more sophisticated financial needs of J.P. Morgan’s clients, all while adhering to IFSCA’s regulatory standards. This recent addition is poised to enhance the bank’s profile in the worldwide financial arena.
The New Blockchain Platform
This platform by JPMorgan is built on blockchain technology and will enable quicker and safer settlement of INR-USD transactions, which will diminish the possibility of mistakes and tardiness. Additionally, the platform will provide enhanced transparency and traceability, allowing banks to track the progress of transactions in real-time.
JPMorgan is set to carry out a blockchain trial that will exclusively involve banks located in India’s GIFT City. GIFT City is a free trade zone that competes with Hong Kong and Singapore as a financial hub. This move is part of JPMorgan’s broader objective of expanding its blockchain-driven trading platform, Onyx. Onyx is aimed at streamlining cross-border payments and settlements.
Blockchain Landscape in India
The potential for blockchain adoption and expansion in India is vast, with the ecosystem constantly expanding. The country has seen the emergence of numerous blockchain startups, and the market for blockchain technology is expected to grow significantly in the coming years. Experts predict that blockchain adoption in India could reach an impressive 46% by 2026, paving the way for significant economic growth. This presents a great opportunity for the local economy to thrive.
India is presently hosting more than 350 startups that specialize in blockchain technology. The blockchain market in India is projected to witness a remarkable compounded annual growth rate (CAGR) of 58% between 2018 and 2024. According to data obtained from several cryptocurrency exchanges, approximately 1.5 crore Indians have invested in cryptocurrencies, which amounts to a total value of Rs 15,000 crores.