Bank ABC becomes the first Middle East bank to introduce faster cross-border payments to specific corridors for corporates and financial institutions utilizing J.P. Morgan’s Coin Systems. Coin Systems is a blockchain-based permissioned system that serves as a payment rail and deposit account ledger and sits within Onyx by J.P. Morgan.
The soft launch of the new payment service by Bank ABC follows close collaboration with the Central Bank of Bahrain (CBB). The CBB provided support across various aspects of the initiative including integrating and scaling the innovative blockchain-based solution within the Kingdom of Bahrain’s payments landscape.
On this occasion, His Excellency the Governor of the Central Bank of Bahrain, Mr. Rasheed AlMaraj, said:
“After working closely with JP Morgan and Bank ABC over the past two years to experiment the execution of cross-border commercial transactions between Bahrain and the U.S., leveraging the J.P. Morgan Coin System, we are pleased to witness the soft launch of this innovative banking solution by a Bahraini-based bank. ”
Mr. Sael Al Waary, Bank ABC Group CEO, said:
“Offering high-value cross-border payments via the J.P. Morgan Coin Systems service, allows us to reduce traditional settlement periods considerably as well as being more cost-effective for our clients .”
J.P. Morgan’s Coin Systems team seeks to help address the complex challenges of cross border payments, simplify clients’ liquidity funding needs, and offer next generation corporate treasury services.
While the offering has been launched with USD and locations involving Bahrain, US, UK, Singapore, Hong Kong, additional locations and currencies, notably Euro, are in the pipeline. Going forward with the planned introduction of programmable payment offerings, it will enable mutual corporate clients to leverage event driven and automated payouts enabling a dynamic and real time treasury management.
Featured image credit: His Excellency the Governor of the Central Bank of Bahrain, Mr. Rasheed AlMaraj, Naveen Mallela, Global Head of Onyx Coin Systems and Mr. Sael Al Waary, Bank ABC Group CEO
