JPMorgan is to test the use of blockchain technology for the provision of dollar-based settlement services for Indian financial institutions.
Dollar payments in India are usually made through the Swift messaging system via Nostro accounts held at US-based banks. However, such payments can only be processed during US office hours and are unavailable over the weekend.
Under the pilot, first reported by the Economic Times, six Indian banks - HDFC, ICICI, Axis Bank, Yes Bank, and IndusInd Bank - will open on-chain Nostro accounts with JPMorgan's branch in Gift City. . The blockchain-based system will enable instantaneous 24x7 settlement between accounts held at the US bank, in effect creating a private intra-correspondent banking network.
The interbank payments network is part of JPMorgan's blockchain unit Onyx, which has already roped in Siemens as an anchor client and run trials with the Central Bank of Bharain.