JPMorgan employs blockchain for round-the-clock dollar transfers with Indian banks.

The global financial services company JPMorgan is continuing to explore the benefits of blockchain technology, which can help to eliminate some of the constraints of traditional finance.

The banking giant has partnered with six major Indian banks to introduce a platform based on blockchain technology that enables interbank settlement of U.S. dollar transactions. This was reported by Bloomberg on June 5th.

The participating banks include HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan’s own banking unit at Gujarat International Finance Tec-City (GIFT City).

The blockchain project aims to expand the capacity of the existing settlement system, according to JPMorgan’s senior country officer Kaustubh Kulkarni. The platform will allow the banks to process instant transactions 24 hours a day, seven days a week, he said.

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Currently, under the interbank settlement system, transactions could take up to several hours. Additionally, settlement is not available on Saturdays, Sundays, or public holidays. JPMorgan’s blockchain pilot will remove this barrier, Kulkarni claimed.

The initiative also aims to help New Delhi position the GIFT City as an alternative trading center to Singapore and Dubai.

JPMorgan will run a pilot project for the next few months to analyze banks’ experience. The pilot project will be launched on Monday, using JPMorgan’s blockchain platform Onyx, after approval from the International Financial Services Center Authority.

As previously reported, JPMorgan launched its Onyx blockchain-based platform in 2020, aiming to improve the quality of wholesale payment transactions. The bank reportedly processed nearly $700 billion in short-term loan transactions via Onyx as of April 2023.

The news comes amid JPMorgan currency strategists pointing out some signs of emerging de-dollarization. The strategists said, “De-dollarisation is evident in FX [foreign exchange] reserves where the dollar’s share has declined to a record as share in exports, but is still emerging in commodities.”

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