JPMorgan has teamed up with six major Indian banks to launch a blockchain-based platform

JPMorgan, a global financial services corporation, is continuing to investigate the possibilities of blockchain, applying the technology to alleviate some of the constraints of traditional finance. The banking behemoth has collaborated with six major Indian banks to establish a blockchain-based platform for interbank settlement of US currency transactions.

HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPMorgan's banking subsidiary in Gujarat International Finance Tec-City, or GIFT City, are among the banks taking part. According to JPMorgan's senior country officer Kaustubh Kulkarni, the blockchain initiative intends to increase the capacity of the present settlement system. The technology, according to the executive, would allow banks to conduct immediate transactions 24 hours a day, seven days a week.

Transactions might take many hours under the present interbank settlement mechanism. Settlement is also not accessible on Saturdays, Sundays, or public holidays. According to Kulkarni, JPMorgan's blockchain trial will remove this hurdle. According to the newspaper, the program also intends to assist the New Delhi market GIFT City as an alternative trading center to Singapore and Dubai.

According to Kulkarni, JPMorgan will undertake a pilot project to examine banks' experiences over the following three months. Following permission from the International Financial Services Center Authority, the pilot project will be started on Monday, utilizing JPMorgan's blockchain platform Onyx. The announcement comes as JPMorgan currency experts point to evidence of emerging de-dollarization. De-dollarisation is seen in FX reserves, where the dollar's proportion of exports has fallen to a record low, but it is still visible in commodities.