Bank ABC of Bahrain will partner with JP Morgan for cross-border payments through its Coin Systems feature backed by the Onyx blockchain.
Bank ABC of Bahrain has recently announced a collaboration with JP Morgan concerning cross-border payments. The bank will use the Coin Systems protocol of JP Morgan for US dollar payment settlements. The Onyx blockchain of JP Morgan powers the popular Coin Systems feature. Both JP Morgan and Bank ABC arrived at the juncture after two years of experiments.
The new cross-border payment service will reduce settlement times and will be more affordable, as affirmed by the bank. The Central Bank of Bahrain also supported the experiments. The central bank supervised and provided key aid across the initiatives in the last couple of years.
The first tranche of the usage of the US dollar will occur across transactions between a few countries. It includes Bahrain, the US, the UK, Hong Kong, and Singapore. Bank ABC and JP Morgan are also planning transactions with the euro across different geographies, along with programmable payments.
“Bank ABC has been one of the earliest adopters of the JPM Coin offering and we are delighted to launch the first of its kind commercial payment offering between J.P. Morgan and Bank ABC using distributed ledger rails. This enables cross-border commercial transactions to be executed between Bahrain and US corridors instantly, atomically and with certainty,” said JP Morgan’s Naveen Mallela.
Several banks have tied up with Onyx in recent times as more financial institutions explore cross-border payments through blockchain. Bank ABC’s project with JP Morgan will be an example for other banks to offer fast and affordable payment services.