First Abu Dhabi Bank completes cross-border payments testing on JPMorgan’s Onyx Coin Systems

First Abu Dhabi Bank (FAB) announced that it has completed a pilot project using JPMorgan’s Onyx Coin Systems distributed ledger for cross-border payments.
First Abu Dhabi Bank completes cross-border payments testing on JPMorgan's Onyx Coin Systems

After successfully completing a cross-border payments test with First Abu Dhabi Bank (FAB), JPMorgan’s blockchain platform Onyx is extending its reach in the Middle East. A comparable Onyx experiment with Bahrain’s Bank ABC preceded the successful test by only a few weeks. Following the “seamlessly executed” test, FAB said it will continue to investigate possibilities with the distributed ledger technology.

As a permissioned blockchain network, Onyx was introduced by JPMorgan in 2020. Tyrone Lobban, the CEO of Onyx, has revealed that the company handles daily transactions worth $1 to $2 billion. In addition to conducting tests in the Gulf, Onyx also enables euro payments in Europe and interbank settlements in India.

The extension comes after JPMorgan’s new Tokenization Collateral Network’s first live deal earlier this month. Shares of tokenized money market funds may be used as collateral for derivatives trading through the system, which is also based on Onyx.

As the technology gains pace, other banks like Citi and Mastercard have announced comparable blockchain asset tokenization services this year. JPMorgan also took part in Singapore’s Project Guardian, a tokenized bond trading initiative. CEO Jamie Dimon continues to be a strong supporter of blockchain technology, despite his previous criticism of cryptocurrencies as “decentralized Ponzi schemes.”

The continuous blockchain development at JPMorgan is evidence that Dimon values permissioned ledgers highly.

A regulated substitute for open blockchains like Ethereum is offered by Onyx. Its gradual growth through tried-and-true real-world applications shows that JPMorgan’s network is continuing to gain momentum. Onyx appears ready for more expansion as international banks sign new agreements, enabling tokenized marketplaces and streamlining international payments.

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