JPMorgan’s blockchain platform, Onyx Coin Systems, continues its expansion in the Middle East by successfully concluding a cross-border payments pilot with First Abu Dhabi Bank (FAB). This completion follows a similar test in Bahrain with Bank ABC. Both pilots revealed the system’s efficiency, with FAB noting its swift response times and hinting at future collaborations.
Launched in 2020, JPMorgan’s Onyx has seen a surge in momentum, currently handling between $1 billion and $2 billion daily, as highlighted by Tyrone Lobban, JP Morgan Onyx Digital Assets & Blockchain head. Beyond the Middle East, the platform’s reach has extended to Europe for euro-denominated payments and to India, where it collaborates with six major banks for interbank USD settlements.
Notably, JPMorgan’s Tokenization Collateral Network, built on the Onyx blockchain, marked its first public trade on October 11. This trade witnessed the tokenization of money market fund shares, later used as security for a derivatives exchange between JPMorgan and BlackRock at Barclays Bank.
Other financial giants, like Mastercard and Citigroup, have also ventured into token networks recently. JPMorgan, along with DBS Bank and Marketnode, partook in Project Guardian, a tokenized bond and deposit liquidity pool initiative by the Monetary Authority of Singapore and Bank for International Settlements, aimed to streamline lending and borrowing processes.
In related news, JPMorgan CEO Jamie Dimon expressed faith in artificial intelligence but remained skeptical about cryptocurrencies, labeling them as “decentralized Ponzi schemes.”
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