Bahrain-based ABC Bank will use JPMorgan Chase’s Onyx Coin Systems for blockchain-based cross-border payments in a software launch or limited launch. The new service will be more cost-effective and shorten settlement times relative to traditional solutions.
ABC Bank will initially use U.S. dollars in transactions involving Bahrain, the United States, the United Kingdom, Singapore and Hong Kong. The partners also plan to conduct transactions in more locations and in euros. Programmable payments are also in development.
After two years of trials, the service is now available. Naveen Mallela, Global Head of Onyx Coin Systems explain In a statement:
“This enables cross-border commercial transactions between Bahrain and the U.S. corridor to be executed immediately, automatically and with certainty.”
The new service has been developed in close collaboration with the Central Bank of Bahrain (CBB). The CBB oversaw a trial in January 2022 in which JPM Coin was used to settle payments between Bahrain Aluminum and its US counterparties through ABC Bank.
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ABC Bank is the first bank in the Middle East to partner with JPMorgan Chase’s blockchain services, the statement said. Earlier this year, Onyx partnered with six Indian banks on a pilot program to offer settlement in US dollars. It also works with Germany’s Siemens Group to settle in euros. JPM Coin was launched in 2020.
After two years of trials, the blockchain payment railway between Bahrain ABC Bank and JPMorgan Chase is officially launched! #Payment #blockchain #OnyxBlockchain #JPMorgan #Payment #banking #Bahrain #digitalpayment #gulfcooperationcouncil #middle east and north africa #abcbank @ABCBankGroup @CBB_News @JPMorgan pic.twitter.com/9LixnA3X1v
– Lara Abdul Malak laraontheBlock (@larissa74leb) September 26, 2023
In recent years, Bahrain has been taking steps to modernize its financial system. Binance received a license in the country in March 2022, beating out Dubai and becoming the first member of the Gulf Cooperation Council to receive an international cryptocurrency exchange license within days.Binance partners with EazyPay to offer retail payments services in Bahrain, although it does not Clear Whether the service is still available.
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