As outlined in the official statement, Bank ABC is the first bank from the Middle East area to extend cross-border payments to certain corridors for corporate and financial institution customers using J.P. Morgan's Coin Systems.
The Coin Systems is a blockchain-based system that acts as a payment rail and deposit account ledger and is part of Onyx by J.P. Morgan - which will now enable instant cross-border commercial transactions between Bahrain and US corridors.
The launch of the new payment service offered by Bank ABC was made possible by a joint venture between the financial institution and the CBB – the latter of which supported the integration and scaling of the blockchain-based solution within the Kingdom of Bahrain's payments landscape.
An official from the CBB emphasised that the institution’s decision to collaborate with Bank ABC and J.P. Morgan for this initiative aligns with CBB’s wider efforts to digitalise the Kingdom’s financial services sector. As part of this larger effort, the CBB reportedly seeks to eliminate the inefficiencies that exist in traditional cross-border payment railways, to facilitate trade between Bahrain and the US, and consequently, to induce economic activity.
According to the official release, the Bank ABC group – whose reach spans five continents – similarly strives to introduce new financial products and services to Bahrain and across its network. In fact, the launch of the instant blockchain payments for institutions offering is purportedly part of ABC’s digital transformation programme.
A representative of the bank further explained that, by expanding cross-border payments via the J.P. Morgan Coin Systems service, the institution aims to reduce the length of traditional settlement periods and offer cost-effective solutions to its customers. To this end, the Bank ABC official emphasised its commitment to fulfilling Bahrain’s vision for a digital economy.
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