The approval from the International Financial Services Centres Authority (IFSCA) has paved the way for interbank US dollar transactions on the platform.
Naveen Mallela, managing director and head of Onyx Global Coin Systems at JP Morgan, said that developing a blockchain-based payments network aligns with GIFT City’s vision of becoming a global finance and IT hub. “India has arguably the most advanced global payment infrastructure, and digital currency rails by Onyx is the next add-on to the infrastructure. The Onyx platform we have deployed operates like a 24X7 settlement network,” said Mallela.
Onyx by JP Morgan, established in 2020, has been a frontrunner in blockchain-based platforms for wholesale payment transactions.
“The interbank dollar clearing pilot is only a small beginning. We see a future for the shared ledger plat-
form as an alternative to existing cross-border payment systems. Onyx can act as a platform for all types of assets — CBDC, currency, or government securities that can be tokenised and transactions settled on a real-time basis without needing a central counterparty,” he said. The platform would also allow banks and corporates to do new transactions like intra-day repo to meet temporary liquidity needs.
Injeti Srinivas, chairperson of International Financial Services Centres Authority (IFSCA), the regulator for GIFT City, said that one of IFSCA’s goals is to incubate new financial technologies supported by a regulatory framework based on global best practices.
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