Bahrain-based ABC Bank plans to use JPMorgan’s Onyx Coin system for blockchain-based cross-border payments in a soft or limited launch. The new service is more cost-effective and reduces settlement times compared to traditional solutions.
ABC Bank will initially use US dollars for transactions involving Bahrain, the US, the UK, Singapore and Hong Kong. The partners are also planning more locations and transactions with the euro. Programmable payments are also in development.
The service was launched after two years of experimentation. Naveen Marella, global head of Onyx Coin Systems, said in a statement:
“This will enable cross-border commerce to be carried out instantly, atomically and reliably between the Bahrain and US corridors.”
This new service was developed in close collaboration with the Central Bank of Bahrain (CBB). CBB oversaw a trial in January 2022 in which JPM Coin was used to settle payments between Aluminum Bahrain and its US counterparties through ABC Bank.
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ABC Bank is the first company in the Middle East to partner with JPMorgan’s blockchain services, according to a statement. Earlier this year, Onyx partnered with six Indian banks on a pilot project to offer USD payments. It has also partnered with Germany’s Siemens conglomerate for euro payments. JPM Coin was born in 2020.
Bahrain’s ABC Bank implements JP Morgan’s blockchain payment rail after 2-year trial! #payment #blockchain #Onyx Block Hein #JP Morgan #payment #Banking #Bahrain #digital payment #GCC #mena #abcbank @ABCBankGroup @CBB_News @JP Morgan https://t.co/3svnrtFJM4 pic.twitter.com/9LixnA3X1v
— Lala Abdul Malak Lala on the Block (@larissa74leb) September 26, 2023
Bahrain has taken steps to modernize its financial system in recent years. Binance received its license in Saudi Arabia in March 2022, making Dubai the first member of the Gulf Arab States Cooperation Council to receive an international cryptocurrency exchange license, just days behind Binance. Binance has partnered with EazyPay to offer retail payment services in Bahrain, but it is unclear whether the service is still available.
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