Blockchain has enormous capabilities to transform the traditional business models in countless ways. Banks in India are building collaborative blockchain ecosystems to create an innovative business model and disrupt the traditional one to create further competitive advantages. The purpose of this study is to examine the relationship between blockchain capabilities (BCC), competitive advantages (CA) and organizational performance (OP). Further, to evaluate the mediating role of CA on the relationship between BCC and OP. In this context, scientific research model consisting of a hypothesis has been developed from the existing literature. The proposed model was tested using statistical data collected from Blockchain specialists, blockchain product marketing managers, experts of future and emergent technology and VP/AVP/Chief Manager/Branch head of banks/ financial Analyst/divisional Managers who are involved in planning and deployment of practical blockchain in banking/financial sector. Data was analyzed and tested through AMOS 22.0 and process macro using a sample of 289 responses. Our empirical result indicated that there is a significant positive relationship between BCC, CA and OP. Furthermore, relationship of BCC and OP partially mediated CA. This paper presents originality and contributes towards the body of knowledge on this subject to understand the relationship and mediation role of CA on the relationship between BCC and OP in Indian banking sector.