<p>Bank ABC, headquartered in Bahrain, has become the first Middle Eastern bank to offer faster cross-border payment solutions for corporate and financial institutions using JP Morgan&#39;s Onyx Coin Systems.</p><h2 id="header-0"><strong>Central bank collaboration</strong></h2><p>This blockchain-based permissioned system, housed within JP Morgan&#39;s Onyx platform, aims to enhance the efficiency and speed of international payments. The introduction of the blockchain-based payment service by Bank ABC follows a closely coordinated effort with the Central Bank of Bahrain (CBB), demonstrative of the interest of both institutions in embracing cutting-edge financial technology.</p><p>Central Bank of Bahrain Governor Rasheed Al Maraj praised the collaboration,<a href="https://www.bank-abc.com/en/Media%20Relations/PressRelease/instant-blockchain-payments-for-institutions" rel="noopener noreferrer nofollow"> stating</a>:&#34;After working closely with JP Morgan and Bank ABC over the past two years to experiment with cross-border commercial transactions between Bahrain and the US, leveraging the JP Morgan Coin System, we are pleased to witness the soft launch of this innovative banking solution by a Bahraini-based bank.&#34;</p><h2 id="header-1"><strong>Embracing innovation and digitalization</strong></h2><p>The initiative aligns with the CBB&#39;s strategic vision to embrace innovation and digitalize the kingdom&#39;s financial services sector. By eliminating inefficiencies in traditional cross-border payment systems, this solution aims to facilitate trade between Bahrain and the US, with the ultimate aim of stimulating greater economic activity.</p><p>Bahrain has been<a href="https://medium.com/&#64;coinness.gl/singapores-whampoa-plans-crypto-friendly-bank-in-bahrain-95a5a81423c5" rel="noopener noreferrer nofollow"> demonstrating</a> more recently a desire to move away from its oil-based economy and embrace blockchain technology as part of that diversification. Bank ABC Group CEO Sael Al Waary stated that it was playing a role as a key enabler of Bahrain&#39;s vision for a digital economy.</p><p>He expressed gratitude to the Central Bank of Bahrain for its support and leadership and recognized JP Morgan for its pivotal role in advancing cross-border payments. The Bank’s CEO outlined the organization’s commitment to introducing innovative products and highlighted the benefits of the JP Morgan Coin Systems service. He explained:</p><p>&#34;Offering high-value cross-border payments via the JP Morgan Coin Systems service allows us to reduce traditional settlement periods considerably and be more cost-effective for our clients.&#34;</p><p>Naveen Mallela, Global Head of Onyx Coin Systems at JP Morgan, underscored the significance of the launch, stating: &#34;Bank ABC has been one of the earliest adopters of the JPM Coin offering, and we are delighted to launch the first-of-its-kind commercial payment offering between JP Morgan and Bank ABC using distributed ledger rails.&#34;</p><h2 id="header-2"><strong>Enabling cross-border transactions</strong></h2><p>The service enables cross-border commercial transactions to occur instantly and with certainty between Bahrain and US corridors. While initially launched with USD and specific locations, the roadmap includes plans for additional locations and currencies, with the euro notably on the horizon. Furthermore, the introduction of programmable payment offerings will empower mutual corporate clients to execute event-driven and automated payouts, enhancing dynamic and real-time treasury management.</p><p>The launch of this service is a pivotal step in Bank ABC&#39;s digital transformation program, aimed at future-proofing and diversifying the bank&#39;s offerings with the latest banking innovations. The initiative reinforces the bank’s undertaking to provide cutting-edge financial services, while contributing to the evolution of Bahrain&#39;s digital economy.</p><p>As financial institutions across the world continue to explore the potential of blockchain and distributed ledger technology, Bank ABC&#39;s collaboration with JP Morgan sets an example for others in the Middle East to evaluate.</p>

Bahrani Bank Launches JPM Coin Payments

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