JPMorgan to speed up interbank settlements in India using blockchain

Financial giant JPMorgan has signed an agreement with six Indian banks to deploy a blockchain-based settlement platform. Bloomberg reports.

The partners include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan’s GIFT City unit.

According to Kaustubha Kulkarni, the regional representative for the firm, the initiative is aimed at refining the interbank settlement system. He said the development will enable instant processing of transactions around the clock.

Under the current Indian settlement system, a transfer can take up to several hours. Moreover, transactions are not settled on weekends and holidays, Kulkarni noted.

The development is built on JPMorgan’s Onyx blockchain platform, launched in 2020.

The rollout of the new payments system will begin “in the coming months.” The move should make India’s capital, New Delhi, an alternative to Singapore and Dubai as a regional trading hub, JPMorgan said.

However, before the initiative can start, it must receive approval from the International Financial Services Centres Authority of India.

In May 2022, the French financial group BNP Paribas joined the Onyx network for tokenised bond trades.