In a groundbreaking move, Bank ABC, headquartered in Bahrain, has unveiled a game-changing cross-border payments service, powered by JPMorgan’s Onyx blockchain platform.
A Milestone Partnership
Bank ABC’s recent achievement marks a significant milestone – it’s the first bank in the Middle East to introduce instantaneous blockchain-powered payments for institutional clients. The foundation of this transformational service is laid upon J.P. Morgan’s Coin Systems, in partnership with the Central Bank of Bahrain (CBB).
The journey to this point involved two years of rigorous experimentation and collaboration between JPMorgan and the Bahraini bank. This partnership not only symbolizes a historic moment for the Middle East but also stands as one of the initial commercial deployments of blockchain technology for cross-border payments.
A Testimony to Innovation
Crucially, this innovative service was developed in close coordination with the CBB. The Central Bank supervised a pivotal trial in January 2022, where JPM Coin facilitated settlements between Aluminum Bahrain and its U.S. counterparts through Bank ABC.
Bahrain-based Bank ABC will harness the potential of JPMorgan’s Onyx Coin Systems in a soft or limited launch for blockchain-based cross-border payments.
Speed, Efficiency, and Cost-Efficiency
This new service promises to bring a wave of benefits to the world of cross-border payments. It’s anticipated to be more cost-effective and significantly reduce settlement times compared to traditional solutions. Initially, it will operate using the U.S. dollar, facilitating transactions between Bahrain, the United States, the United Kingdom, Singapore, and Hong Kong. Excitingly, plans are already underway to expand its reach to more locations and transactions involving the euro.
The unveiling of this blockchain-driven cross-border payments service by Bank ABC and JPMorgan underscores their commitment to redefining banking experiences for clients. As it rolls out further and spreads its wings across more currencies and geographies, it’s poised to revolutionize the way we send and receive international payments. The future of cross-border transactions has arrived, and it’s faster, more efficient, and cost-effective than ever before.
