JPMorgan’s Onyx Coin Systems has scored another win in the Middle East with the completion of a blockchain-based cross-border payments pilot project with First Abu Dhabi Bank (FAB). The pilot phase was “executed seamlessly with satisfactory response times,” a statement said.
The FAB pilot ended weeks after a similar test in Bahrain, where Bank ABC tested the Onyx system and moved to a limited launch of services. FAB said it continues to explore the possibilities offered by the system.
JPMorgan’s authorized distributed ledger was launched in 2020 and has been gaining momentum in recent months. JP Morgan Onyx Digital Assets & Blockchain head Tyrone Lobban said earlier this month that the platform currently processes between $1 billion and $2 billion per day.
FAB Bank completes blockchain #payments pilot with JP Morgan: #UAE First Abu Dhabi Bank has announced the successful completion of its blockchain-based cross-border payments from JP Morgan’s Coin.@laraonzeblock. #DigitalBanking https://t.co/q8CrApFaJG
— Urs Bolt (@UrsBolt) October 10, 2023
In addition to the expansion in the Middle East, Onyx has also been used for payments in euros in Europe since June. That same month, it also launched interbank USD settlements in India with a consortium of six banks.
On October 11, the first public transaction was settled on JPMorgan’s new Tokenization Collateral Network, which also runs on the Onyx blockchain. Money market fund shares were tokenized and deposited with Barclays Bank as collateral for a derivatives exchange between JPMorgan and BlackRock.
Mastercard announced in June that it was testing its Multi Token Network, and Citigroup introduced its Citi Token Services in September.
JPMorgan was one of the participants in Project Guardian, with DBS Bank and Marketnode. The project, which was completed in June, was developed by the Monetary Authority of Singapore and the Bank for International Settlements. It involved the creation of a liquidity pool of tokenized bonds and deposits for use in lending and borrowing.
JPMorgan CEO Jamie Dimon recently expressed his strong belief in artificial intelligence. He also called cryptocurrencies “decentralized Ponzi schemes.”