Bahrain’s Bank ABC using JPMorgan’s Onyx blockchain for cross-border payments
Bahrain-based Bank ABC will use JPMorgan’s Onyx Coin Systems for blockchain-based cross-border payments in a soft, or limited, launch. The new service will be more cost effective and reduce settlement times relative to traditional solutions.
Bank ABC will at first use the U.S. dollar in transactions involving Bahrain, the United States, United Kingdom, Singapore and Hong Kong. The partners are planning more locations and transactions with the euro as well. Programmable payments are also in the works.
The service has been launched after two years of experiments. Global head of Onyx Coin Systems Naveen Mallela said in a statement:
The new service was developed in close collaboration with the Central Bank of Bahrain (CBB). The CBB supervised a trial in January 2022 in which JPM Coin was used to settle payments between the national Aluminium Bahrain and its U.S. counterparties through Bank ABC.
Related: JPMorgan sees advantages in deposit tokens over stablecoins for commercial bank blockchains
Bank ABC has the first partnership with JPMorgan’s blockchain service in the Middle East, according to the statement. Earlier this year, Onyx linked up with six Indian banks in a pilot project to offer USD settlement. It also partnered with the German Siemens conglomerate for settlement in euros. JPM Coin was launched in 2020.
Bahrain’s ABC Bank goes live with Blockchain payments rail from JP Morgan After two years of trials! #payments #blockchain #Onyxblockhain #JPMorgan #payments #banking #bahrain #digitalpayments #GCC #MENA #abcbank @ABCBankGroup @CBB_News @jpmorgan https://t.co/3svnrtFJM4 pic.twitter.com/9LixnA3X1v
Bahrain has been taking steps to modernize its financial system in recent years. Binance received a license in the
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