JPMorgan plans to put Blockchain technology to the test in order to provide dollar-based settlement services to Indian financial institutions. India typically receives dollar payments via the Swift messaging system through Nostro accounts held at US-based banks.
However, these payments cannot be processed on the weekends and are only available during US business hours. Instantaneous 24×7 settlement between accounts held at the US bank will be made possible by the Blockchain-based system, effectively establishing a private intra-correspondent banking network.
The interbank payments network is a part of the Blockchain division of JPMorgan called Onyx, which has already signed Siemens as an anchor client and conducted trials with the Central Bank of India.