Bahrain’s bank has begun using a blockchain platform developed by JPMorgan to make dollar transfers to the United States, Hong Kong, Singapore, and the United Kingdom.
Bank ABC, an international bank of the Middle East and North Africa, has announced support for fast cross-border payments between Bahrain and several countries via the Coin Systems blockchain platform from American investment giant JPMorgan.
Bank ABC is implementing Coin Systems, powered by Onyx Digital Assets, for international payments on a limited basis. Initially, the bank will use the U.S. dollar in transactions between Bahrain and the United States, Singapore, the United Kingdom, and Hong Kong.
According to Naveen Mallela, Global Head of Coin Systems, the geography of blockchain payments in the region will be further expanded, and the option to use the euro will be added. Sael Al Waary, CEO of Bank ABC, said Coin Systems would significantly improve efficiency and reduce settlement times. Programmable payments are also in development, he said.
It’s worth noting that Bank ABC was involved in the development of the service back in January 2022, when JPMorgan, under the supervision of the Central Bank of Bahrain (CBB), first conducted test transactions in the region through Coin Systems. Back then, the JPM Coin blockchain system was used to settle payments between local company Aluminium Bahrain and its U.S. counterparties through Bank ABC’s infrastructure.
H.E. Rasheed Al Maraj, Chief Executive of CBB, said the initiative was in line with the Bahraini authorities’ strategic vision to innovate and digitalize the kingdom’s financial services sector. He believes the use of JPMorgan’s blockchain system will boost economic activity in the region and facilitate efficient trade between Bahrain and the U.S. in particular.
Bank ABC has become JPMorgan’s first blockchain services partner in the Middle East. Earlier in 2023, interbank settlement based on the Onyx blockchain system was launched in a test mode in India. Besides, JPMorgan’s corporate clients, including German conglomerate Siemens, got the opportunity to settle in euros.
