The pilot initiative, which involves HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan’s banking unit in Gujarat, India, is set to commence on Monday. According to reports, the main aim of this initiative is to facilitate instantaneous settlement of dollar transactions, thus eliminating the requirement for prolonged transaction processing durations that usually extend over multiple days and are confined to weekdays.
The headquarters of the project will be situated in Gujarat International Finance Tec-City (GIFT City), which aims to create a global financial hub that can compete with renowned financial centers like Singapore and Dubai. In 2020, JPMorgan introduced Onyx, a digital asset network that was created with the express purpose of facilitating the settlement of wholesale payment transactions.
Onyx has played a significant role in the advancement of the world’s inaugural blockchain platform spearheaded by a financial institution, by enabling the transfer of value, data, and digital resources. Subsequent versions of the initiative have the potential to enable the execution of foreign exchange transactions and settlements for assets that have been tokenized.
Despite the decline in crypto markets and regulatory uncertainty in various countries, JPMorgan has remained resolute in its commitment to tokenizing conventional financial assets. The bank on Onyx has successfully executed short-term loan transactions worth almost $700 billion. As per the report, Onyx has been described as a version of Ethereum that operates on permissioned blockchain. It allows the bank’s customers to engage in token trading, which represents ownership rights to US Treasurys. Additionally, the platform facilitates the use of blockchain bank accounts.