<p>First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates (UAE), has ventured into the world of blockchain technology through a partnership with JPMorgan and its Onyx blockchain.</p><h2 id="header-0">Fast tracking cross-border transactions</h2><p>International financial transactions have long been afflicted by intricate procedures and snail-paced response times. These challenges have been particularly acute when it comes to cross-border payments. In response, FAB will utilize JPMorgan’s Coin Systems in order to expedite and streamline such cross-border payments.</p><p>Powered by blockchain technology, JPMorgan’s Coin Systems advocates for swift transfers and settlements through a secure, distributed ledger. This collaboration between FAB and JPMorgan’s Onyx division was announced via a<a href="https://www.zawya.com/en/press-release/companies-news/fab-successfully-completes-pilot-testing-with-jp-morgans-coin-systems-for-blockchain-based-cross-border-payments-ezcal4sl" rel="noopener noreferrer nofollow"> press release</a> published on Tuesday (local time).</p><p>The initiative represents FAB’s efforts towards leveraging cutting-edge technology, while improving and redefining the customer experience. While the initial testing phase was a success, it’s merely a prologue to FAB’s broader plans to utilize the technology for global transactional banking.</p><p>With assets totaling AED 1.1 trillion ($312 billion) as of mid-2023 and laudable ratings from Moody’s, S&amp;P, and Fitch, FAB maintains a significant presence in banking in the Middle East region.</p><h2 id="header-1">Onyx blockchain</h2><p>JPMorgan launched its Onyx blockchain in 2020 as a permissioned blockchain network. It is understood that the network processes daily transactions to the value of between $1 billion and $2 billion through partnerships established with banks in the Middle East, Europe, and India. Among the services offered by Onyx Digital Assets are tokenized US treasury bonds and mortgage-backed securities alongside its JPM Coin.</p><p>JPMorgan is not alone in terms of top-tier banks and financial services firms who are delving into the world of blockchain. Rivals such as Citi<a href="https://www.citigroup.com/global/news/press-release/2023/citi-develops-new-digital-asset-capabilities-for-institutional-clients" rel="noopener noreferrer nofollow"> announced</a> its Citi Token Services product offering in September. It’s a blockchain-based service that utilizes tokenized deposits for the purpose of trading and providing liquidity.</p><p>Meanwhile, payments firm Mastercard<a href="https://www.mastercard.com/news/latin-america/en/newsroom/press-releases/pr-en/2023/june/mastercard-announces-multi-token-network-mtn-to-scale-and-secure-blockchain-technology/" rel="noopener noreferrer nofollow"> announced</a> that it was performing testing on its Multi Token Network in June. For its part, JPMorgan has also been a participant in Singapore’s Project Guardian, a collaborative initiative led by the Monetary Authority of Singapore in conjunction with the financial services sector, centered on asset tokenization.</p><h2 id="header-2">Bahrani partnership</h2><p>This latest collaboration follows hot on the heels of JPMorgan’s <a href="https://medium.com/&#64;coinness.gl/bahrani-bank-launches-jpm-coin-payments-dbf42cfddfed" rel="noopener noreferrer nofollow">partnership</a> with another Middle Eastern bank last month. Bank ABC, which is headquartered in Bahrain, became the first Middle Eastern bank to utilize JPMorgan’s Onyx Coin Systems for faster cross-border payments.</p><p>That initiative also had the support of Bahrain’s central bank. At the time of the launch of the collaboration, Central Bank of Bahrain Governor Rasheed Al Maraj stated:</p><p>”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.”</p>

UAE Accelerates Cross-Border Payments with JPMorgan’s Onyx

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