JPMorgan's Onyx Coin Systems achieves a major milestone with the completion of a blockchain-based cross-border payments pilot project in collaboration with First Abu Dhabi Bank (FAB), the United Arab Emirates' largest bank and one of the strongest financial institutions in the world.

The pilot phase was executed seamlessly and delivered satisfactory response times, marking a positive outcome for the project.

This success follows a similar test conducted in Bahrain with Bank ABC, resulting in a limited launch of services.

JPMorgan's Distributed Ledger

Ledger JPMorgan's permissioned distributed ledger, which was launched in 2020, has been steadily gaining momentum in recent months.

JP Morgan Onyx Digital Assets & Blockchain head Tyrone Lobban reported that the platform currently processes daily transactions in the range of $1 billion to $2 billion.

This growth underscores the growing significance of blockchain technology in cross-border payments and financial services.

On 11 October, a significant milestone was achieved when JPMorgan settled the first public trade on its Tokenisation Collateral Network, which also operates on the Onyx blockchain.

The platform facilitated the tokenisation of money market fund shares, which were then deposited at Barclays Bank to serve as security for a derivatives exchange between JPMorgan and BlackRock.

This move reflects the industry's growing interest in leveraging blockchain and tokenisation for enhanced financial services.

Blockchain Adoption Across Financial Institutions

The adoption of blockchain and tokenisation technology is not limited to JPMorgan.

Other major financial institutions are also exploring these innovative solutions.

Mastercard announced its testing of the Multi Token Network in June, while Citigroup introduced its Citi Token Services in September.

This growing interest in blockchain highlights its potential to revolutionise the financial sector.

JPMorgan's active participation in Project Guardian, in collaboration with DBS Bank and Marketnode, demonstrates its commitment to advancing blockchain technology.

The project, developed by the Monetary Authority of Singapore and the Bank for International Settlements, focused on creating a liquidity pool of tokenised bonds and deposits for lending and borrowing.

This collaborative effort signifies the industry's dedication to exploring the possibilities offered by blockchain.

JPMorgan's CEO's stance

Despite his strong belief in the future of artificial intelligence, JPMorgan's CEO Jamie Dimon, remains critical of cryptocurrencies and has referred them as "decentralised Ponzi schemes".

His perspective reflects the ongoing debate surrounding the role of cryptocurrencies in the financial landscape.