Using its blockchain-based trading platform, Onyx, investment bank JP Morgan has joined hands with six other Indian banks to settle interbank dollar transactions. Through this platform, corporates and banks will be able to do intra-day repo to meet liquidity needs.
According to a report, the six banks align with Gujarat International Finance Tech-City (GIFT) City’s vision of becoming a global finance and IT hub. The GIFT City is a finance and IT zone under construction in Gandhinagar.
Injeti Srinivas, chairperson of International Financial Services Centres Authority (IFSCA), the regulator for GIFT City, told a daily that IFSCA was keen to support new financial technologies aided by a regulatory framework based on global practices.
Managing director and head of Onyx Global Coin Systems at JP Morgan, Naveen Mallela, was quoted as saying, “India has arguably the most advanced global payment infrastructure, and digital currency rails by Onyx is the next add-on to the infrastructure. The Onyx platform we have deployed operates like a 24X7 settlement network.”
“The interbank dollar clearing pilot is only a small beginning. We see a future for the shared ledger platform as an alternative to existing cross-border payment systems. Onyx can act as a platform for all types of assets — CBDC, currency, or government securities that can be tokenised and transactions settled on a real-time basis without needing a central counterparty,” he added.