October 11, 2023

FAB Announces Success of Testing J.P. Morgan’s Coin Systems

FAB Bank

FAB Bank

First Abu Dhabi Bank (FAB), which is the largest bank in the United Arab Emirates and also one of the world’s leading financial institutions, has successfully completed its pilot testing in partnership with J.P. Morgan’s Coin Systems for blockchain-based cross-border payments.

J.P. Morgan’s Coin Systems are designed to provide digital solutions using a proprietary blockchain network, for instant transfers and settlements of value within a permissioned distributed ledger.

The pilot phase was executed seamlessly, and the response times were satisfactory. This has highlighted the capabilities and potential of blockchain technology in improving cross-border payment solutions.

Moving forward, FAB’s Global Transaction Banking division is ready to explore more opportunities with J.P. Morgan’s Coin Systems. This will reinforce their commitment to advancing the cross-border payments landscape.

The completion of this pilot project is a significant milestone in the evolution of blockchain technology within the financial industry. It signals the potential for more efficient and secure cross-border transactions in the future. It is worth noting that FAB has been actively exploring blockchain technology for cross-border payments.

However, the bank has not shown any pronounced interest in Central Bank Digital Currencies (CBDCs) as of yet. While some financial institutions have been considering the implementation of CBDCs, FAB’s primary focus has been on enhancing cross-border payment solutions.

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

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.

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