Indian Banks And JPMorgan Test Blockchain-Based Settlement

JPMorgan will try the use of blockchain technology to provide dollar-based settlement services to Indian financial institutions.

Most dollar payments in India are made through the Swift messaging system and Nostro accounts held at US-based banks. But these kinds of payments can only be made during US business hours. They can’t be made on the weekend.

The Economic Times was the first to report on the experiment, which will see six Indian institutions, including HDFC, ICICI, Axis Bank, Yes Bank, and IndusInd Bank, open on-chain Nostro accounts with JPMorgan’s Gift City office. By allowing instantaneous 24×7 settlement between accounts held at the US bank, the blockchain-based solution will effectively establish a private intra-correspondent banking network.

The interbank payments network is part of JPMorgan’s blockchain unit, Onyx. It has already signed up Siemens as a key client and done tests with the Central Bank of Bharain.