JPMorgan Chase & Co. JPM is set to pioneer a groundbreaking initiative in India, partnering with major local banks to implement a blockchain-oriented platform aimed at streamlining interbank dollar transactions within the country's burgeoning international financial center.
Kaustubh Kulkarni, JPMorgan's Senior Country Officer for India and vice chairman for the Asia Pacific told Bloomberg in an interview, "In the coming months, we'll be spearheading a pilot project to glean insight into the banks' experiences with this cutting-edge technology."
The prestigious roster of Indian financial institutions collaborating on this project includes HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Yes Bank Ltd. and IndusInd Bank Ltd, complemented by JPMorgan’s own unit stationed in GIFT City.
This strategic maneuver bolsters New Delhi's ambitious endeavors to propel the Gujarat International Finance Tec-City (GIFT City) into the limelight as a competitive alternative to trading giants Singapore and Dubai.
In support of this goal, the Reserve Bank of India has inaugurated a domestic non-deliverable forward market, denominated in dollars, within GIFT City.
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The existing settlement system comes with certain time constraints, often taking several hours for settlement completion and remaining inactive on weekends and public holidays.
With the implementation of the real-time blockchain system, these barriers will be dissolved, enabling round-the-clock operation.
"The adaptation of blockchain technology expedites transactions to be processed instantly, allowing banks in GIFT City to accommodate their specific time zone and working hours," Kulkarni said.
The pilot project is due to kick off on Monday, pending approval from the International Financial Services Center Authority.
It will leverage Onyx, JPMorgan's blockchain platform built for wholesale payment transactions, which was launched in 2020.
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