Introduction
Bahrain-based Bank ABC has announced a partnership with JPMorgan's Onyx Coin Systems for blockchain-based cross-border payments. The new service aims to reduce costs and settlement times compared to traditional solutions.
Improved Efficiency and Cost Effectiveness
Bank ABC will initially use the U.S. dollar for transactions involving Bahrain, the United States, United Kingdom, Singapore, and Hong Kong. The partners also plan to expand to more locations and use the euro for transactions. The service will offer programmable payments in the future.
Successful Trials and Collaboration
The new service comes after two years of experiments and has been developed in close collaboration with the Central Bank of Bahrain (CBB). The CBB supervised a trial in January 2022, where JPM Coin was used to settle payments between Bahrain's Aluminium Bahrain and its U.S. counterparts through Bank ABC.
First Middle East Partnership
Bank ABC is the first Middle East institution to partner with JPMorgan's blockchain service. Earlier this year, Onyx collaborated with six Indian banks for a pilot project on USD settlement and partnered with the German Siemens conglomerate for settlement in euros. JPM Coin was launched in 2020.
Modernizing Bahrain's Financial System
Bahrain has been taking steps to modernize its financial system in recent years. In March 2022, Binance became the first member of the Cooperation Council for the Arab States of the Gulf to receive a license for an international crypto exchange in the kingdom. Binance also partnered with EazyPay to offer retail payment services in Bahrain.
Bahrain’s ABC Bank goes live with Blockchain payments rail from JP Morgan After two years of trials! #payments #blockchain #Onyxblockhain #JPMorgan #payments #banking #bahrain #digitalpayments #GCC #MENA #abcbank @ABCBankGroup @CBB_News @jpmorgan https://t.co/3svnrtFJM4 pic.twitter.com/9LixnA3X1v
