Bahrain’s Bank ABC using JPMorgan’s Onyx blockchain for cross-border payments
Bahrain-based Bank ABC has announced its partnership with JPMorgan’s Onyx Coin Systems for blockchain-based cross-border payments. This new service is expected to be more cost-effective and reduce settlement times compared to traditional solutions.
The initial launch of the service will involve transactions in the United States dollar between Bahrain, the U.S., the United Kingdom, Singapore, and Hong Kong. However, Bank ABC and JPMorgan plan to expand to more locations and include transactions with the euro as well. They are also working on incorporating programmable payments into the service.
The launch of this service comes after two years of experiments and collaboration with the Central Bank of Bahrain (CBB). The CBB supervised a trial earlier this year in which JPM Coin, JPMorgan’s digital currency, was used to settle payments between Aluminium Bahrain and its U.S. counterparties through Bank ABC.
This partnership makes Bank ABC the first in the Middle East to use JPMorgan’s blockchain service. Previously, Onyx Coin Systems had partnered with six Indian banks to offer U.S. dollar settlement and partnered with the German conglomerate Siemens for settlement in euros. JPM Coin itself was launched in 2020.
Bahrain has been actively modernizing its financial system, and this partnership with JPMorgan is another step towards that goal. In March 2022, Binance, a leading cryptocurrency exchange, received a license in Bahrain, beating Dubai to become the first member of the Cooperation Council for the Arab States of the Gulf to license an international crypto exchange. Binance also partnered with EazyPay to provide retail payment services in Bahrain.
Overall, Bank ABC’s partnership with JPMorgan’s Onyx Coin Systems for blockchain-based cross-border payments is a significant development for the financial industry in Bahrain. It demonstrates the country’s commitment to embracing new technologies and improving the efficiency of its financial system. With plans for further expansion and the inclusion of programmable payments, the service is expected to bring even more benefits to businesses and individuals involved in cross-border transactions.
