September 27, 2023

Bank ABC in Bahrain Begins To Use JPMorgan’s Onyx blockchain

Bank ABC of Bahrain

Bank ABC of Bahrain

Bahrain-based Bank ABC has partnered with JPMorgan’s Onyx Coin Systems to launch a blockchain-based cross-border payment service.

This new offering promises to be more cost-effective and efficient than traditional solutions, reducing settlement times. Initially, Bank ABC will use the U.S. dollar for transactions involving Bahrain, the United States, the United Kingdom, Singapore, and Hong Kong.

However, the partners plan to expand the service to include more locations and transactions using the euro. Additionally, programmable payments are currently in development. This service comes after two years of experimentation and testing.

In this regard, Global head of Onyx Coin Systems Naveen Mallela said, “This enables cross-border commercial transactions to be executed between Bahrain and U.S. corridors instantly, atomically and with certainty.”

In a joint effort with the Central Bank of Bahrain (CBB), a new service was created and tested in January 2022. The trial utilized JPM Coin to settle payments between Aluminium Bahrain and their U.S. counterparts through Bank ABC.

This partnership marks Bank ABC as the first in the Middle East to utilize JPMorgan’s blockchain service. Earlier this year, Onyx also partnered with six Indian banks to offer USD settlement and with Siemens for settlement in euros. JPM Coin was launched in 2020.

Bahrain has been actively modernizing its financial system in recent years. In March 2022, Binance was granted a license in the kingdom, making it the first international crypto exchange member of the Cooperation Council for the Arab States of the Gulf. It has also partnered with EazyPay to offer retail payment services in Bahrain, although it is unclear if the service is still available.

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