JPMorgan’s blockchain platform Onyx continues to expand its presence in the Middle East after completing a cross-border payments pilot with First Abu Dhabi Bank (FAB).
The successful test comes just weeks after a similar Onyx trial with Bahrain’s Bank ABC. FAB said it will keep exploring opportunities with the distributed ledger system following the “seamlessly executed” pilot.
JPMorgan launched Onyx in 2020 as a permissioned blockchain network. Onyx head Tyrone Lobban recently revealed it processes between $1-2 billion in transactions daily. Beyond tests in the Gulf region, Onyx facilitates euro payments in Europe and interbank settlements in India.
The expansion follows the first live trade on JPMorgan’s new Tokenization Collateral Network earlier this month. The system, also built on Onyx, allows tokenized money market fund shares to be used as collateral for derivatives trades.
Rival banks like Citi and Mastercard have unveiled similar blockchain asset tokenization services this year as the technology gains traction. JPMorgan also participated in Singapore’s Project Guardian, which centred on tokenized bond trading.
CEO Jamie Dimon remains a major blockchain proponent, though he recently bashed cryptocurrencies as “decentralized Ponzi schemes.”
JPMorgan’s continued blockchain progress suggests Dimon sees strong utility in permissioned ledgers.
Onyx provides a regulated alternative to public blockchains like Ethereum. Its methodical expansion through tested real-world applications indicates steady momentum for JPMorgan’s network.
As global banks ink further deals, Onyx seems poised for additional growth, supporting tokenized markets and simplifying cross-border transfers. The latest FAB pilot highlights the ongoing role of permissioned blockchains in mainstream finance.
Also Read: Bank ABC Using JPMorgan’s Onyx Blockchain For Cross-Border Payments
