Bank ABC is set to collaborate with JPMorgan’s Onyx Coin Systems, with a primary focus on utilizing the US dollar in transactions spanning Bahrain, the United States, the United Kingdom, Singapore, and Hong Kong. The partners also have plans to expand their operations and transactions involving the euro. Additionally, they are in the process of developing programmable payments.
This significant collaboration comes after two years of trials. Naveen Mallela, Global President of Onyx Coin Systems, had this to say:
“It enables instant, atomic, and precise cross-border commercial transactions between the Bahrain and US corridors.”
The new service has been developed in close collaboration with the Central Bank of Bahrain (CBB). In January 2022, the CBB conducted an audit where JPM Coin was used through Bank ABC to settle payments between Bahrain National Aluminum and US counterparts.
Onyx Coin Systems
According to the announcement, Bank ABC’s collaboration with JPMorgan marks the first partnership in the Middle East for JPMorgan’s blockchain service. Earlier this year, Onyx initiated a pilot project with six Indian banks to offer USD settlement. Furthermore, they have partnered with the German conglomerate Siemens for settlement in euros. JPM Coin was launched in 2020.
Bahrain’s Financial Modernization
In recent years, Bahrain has taken steps to modernize its financial system. As the first member of the Gulf Cooperation Council, it surpassed Dubai and licensed an international crypto exchange. Binance had previously collaborated with EazyPay to offer retail payment services in Bahrain, although the availability of this service remains uncertain.