Bank ABC Initiates Blockchain-Powered Cross-Border Payment Service in Partnership with JP Morgan and CBB September 26, 2023 September 26, 2023 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsSeptember 26, 2023 by Kelly Cromley

Bank ABC Initiates Blockchain-Powered Cross-Border Payment Service in Partnership with JP Morgan and CBB

In a significant move aimed at enhancing the efficiency and cost-effectiveness of cross-border transactions, Bahrain-based Bank ABC has unveiled a novel blockchain-based payment service designed to cater to its corporate and institutional clientele. This pioneering endeavor is a result of a collaborative effort between Bank ABC, JP Morgan, and the Central Bank of Bahrain (CBB).


Enhancing Cross-Border Transactions with Blockchain Technology


The recently soft-launched blockchain-driven service is poised to revolutionize the way high-value transfers are conducted between Bahrain and the United States. Central to this groundbreaking initiative is the utilization of JP Morgan’s Coin Systems, which is integrated within the JP Morgan Onyx blockchain ecosystem, introduced in 2020.


JP Morgan’s Coin Systems serves as the linchpin of the US bank’s comprehensive product offering, JPM Coin. Functioning within a permissioned framework, JPM Coin facilitates seamless cross-border transfers through its payment rail and deposit account ledger. By adopting this innovative approach, the system effectively addresses the longstanding challenges associated with international payments, such as liquidity funding constraints. Moreover, it extends support to a diverse array of payment modalities, encompassing Delivery versus Payment (DvP), Payment versus Payment (PvP), and machine-to-machine transactions.


Bank ABC’s Vision for the Future of Cross-Border Payments


Sael Al Waary, the Group CEO of Bank ABC, articulated the core objectives of the newly introduced service. He explained how the primary aim is to “significantly reduce traditional settlement periods,” thereby expediting the transaction process and enhancing operational efficiency. Simultaneously, the initiative strives to provide “more cost-effective” avenues for international transfers, directly benefiting the participating clients.


Collaborative Efforts with Central Bank of Bahrain


Bank ABC’s foray into blockchain-powered cross-border payments was made possible through close cooperation with the Central Bank of Bahrain (CBB). This collaborative relationship, spanning over two years, played a pivotal role in integrating the bank’s innovative solution with the national payments infrastructure of the Kingdom.


Rasheed AlMaraj, the Governor of CBB, lauded the initiative, highlighting its alignment with the central bank’s overarching vision. He emphasized the importance of embracing innovation and digital transformation within Bahrain’s financial services sector. The primary goal is to eradicate the inefficiencies ingrained in traditional cross-border payments, thereby facilitating trade and fostering economic activity between Bahrain and the United States.


Bank ABC’s Strategic Expansion


Notably, Bank ABC has been actively bolstering its trade finance capabilities in recent times. The launch of the blockchain-based cross-border payment system coincides with another strategic move, the introduction of ABC Trade. This cloud-based digital platform, unveiled in collaboration with Swiss technology provider Komgo, serves as a conduit to connect the bank’s corporate clients with a comprehensive documentary trade suite.


In conclusion, Bank ABC’s innovative foray into blockchain-based cross-border payments, in partnership with JP Morgan and CBB, signifies a significant leap forward in the realm of international finance. By leveraging cutting-edge technology, the initiative seeks to streamline transactions, reduce settlement times, and stimulate economic activity between Bahrain and the United States. Furthermore, Bank ABC’s commitment to enhancing its trade finance capabilities underscores its dedication to providing holistic financial solutions to its clientele.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.