Bank ABC, a Bahrain-based bank, has partnered with J.P. Morgan to leverage its Coin Systems for blockchain payments. This collaboration has been made possible through the support of the Central Bank of Bahrain (CBB). Bank ABC is the first bank in the Middle East to offer cross-border payments to certain corridors for corporate and financial institution customers using J.P. Morgan’s Coin Systems.
The Coin Systems is a blockchain-based payment rail and deposit account ledger that is part of Onyx, J.P. Morgan’s platform. This partnership will enable instant cross-border commercial transactions between Bahrain and US corridors. The launch of this new payment service was made possible through a joint venture between Bank ABC and the CBB, which supported the integration and scaling of the blockchain-based solution within Bahrain’s payments landscape.
The collaboration between Bank ABC, J.P. Morgan, and the CBB aligns with the CBB’s efforts to digitalize Bahrain’s financial services sector. The CBB aims to eliminate inefficiencies in traditional cross-border payment railways, facilitate trade between Bahrain and the US, and stimulate economic activity.
Bank ABC, whose reach spans five continents, strives to introduce new financial products and services to Bahrain and its network. The instant blockchain payments for institutions offering is part of Bank ABC’s digital transformation program. By expanding cross-border payments with J.P. Morgan’s Coin Systems, the bank aims to reduce settlement periods and provide cost-effective solutions to its customers. Bank ABC is committed to fulfilling Bahrain’s vision for a digital economy.
J.P. Morgan’s Coin Systems has already been launched in several locations, including the US, UK, Singapore, and Hong Kong, with USD as the currency. The product is expected to expand to other locations and currencies, including the Euro. In the future, corporate clients will be able to leverage event-driven and automated payouts, enabling dynamic and real-time treasury management.
This partnership between Bank ABC, J.P. Morgan, and the CBB marks a significant milestone in the adoption of blockchain technology in the Middle East. It demonstrates the growing interest and recognition of blockchain’s potential in revolutionizing cross-border payments and improving efficiency in the financial industry. As more banks and central banks embrace blockchain technology, we can expect to see further advancements in the global payments landscape.
