Bahrain central bank completes JPM Coin remittance trial

abdelaziz Fathi

The Central Bank of Bahrain has reportedly completed a successful overseas remittance trial enabled by JP Morgan’s digital currency, JPM Coin.

In collaboration with the Wall Street giant’s blockchain and crypto unit, Onyx, Bahrain’s Bank ABC initiated real-time payments for Aluminium Bahrain (Alba) with its counterparties in the US using the JPM Coin system.

According to the report, the trial marks an advanced phase for Bahrain central bank’s endeavor to explore blockchain applications in real-world remittances. The bank’s foreign exchange and IT departments are set to work on introducing and commercializing the technology soon.

JPM Coin serves as a payment rail and deposit account ledger, enabling participating entities to transfer US Dollars held on deposit with the largest bank in the United States, the report added.

The actual amount that was involved in the trial was not mentioned. But, the development is massive for the wholesale payments business, as JP Morgan moves more than $6 trillion every day across more than 100 countries for its corporate clients. Additionally, it will be the first real-world applications for a cryptocurrency in banking, replacing decades-old networks like Swift, with more to come shortly after the international payments are tested.

JPM Coin goes live with commercial uses

Rasheed Al Maraj, governor, Central Bank of Bahrain, says: “We at the Central Bank of Bahrain are extremely pleased to announce the success of this test which aligns with our vision and strategy to continually develop and enrich the capabilities extended to the stakeholders within our financial services sector in the Kingdom using advanced and leading emerging technologies. Through our work with ALBA, Bank ABC and Onyx by J.P. Morgan, we aspire to address and eliminate the inefficiencies and pain points that exist today in the traditional cross-border payments arena.”

Ali Moosa, senior country officer at JP Morgan Bahrain described the project as part of a far larger trend toward the tokenization of financial assets, adding: “The completed test with Alba and Bank ABC will help inform further development of JPM Coin Systems for future use by our correspondent banking partners.”

JP Morgan Chase revealed last year that a few clients had already begun using its own cryptocurrency to instantly send and settle payments around the world.

Dubbed ‘JPM Coin’, the stablecoin facilitates the transfer of payments between institutional clients, the latest step in Wall Street’s evolving approach to the crypto space. However, the coin is available only for international payments for large corporate clients, that have undergone regulatory checks.

The New York-based lender started trials of its JPM Coin in conjunction with corporate clients with the ultimate aim of speeding up transactions, such as cross-border payments and corporate debt issuance.

JPMorgan, which its CEO, Jamie Dimon once bashed cryptocurrencies as a fraud that will not end well for its investors, created a new unit to handle its blockchain business called Onyx.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<