JP Morgan unveils blockchain-powered Kinexys Digital Payments, now available in British Pounds for the UK market.
In the rapidly evolving world of digital finance, JP Morgan's Kinexys Digital Payments is making strides, transforming corporate payments and foreign exchange with its blockchain-based solutions.
The financial giant has launched Kinexys Digital Payments in GBP, enabling 24/7 corporate payments and foreign exchange for dollars, euros, and pounds. This digital solution, already processing over $1.5 trillion in cumulative transactions across all its services and averaging around $2 billion in transactions daily, is poised to revolutionise the industry.
Kinexys Digital Payments is not only benefiting JP Morgan's clients but also firms like Marex and Brevan Howard Digital, who have integrated Kinexys to modernise their payment infrastructure and reduce settlement risk through near-instant blockchain settlements in USD, EUR, and GBP.
However, there's no available information indicating that JP Morgan's Kinexys Digital Payments service plans to integrate with the UK's Digital Securities Sandbox for settlement of institutional transactions. The Digital Securities Sandbox, a joint initiative from the Bank of England and the Financial Conduct Authority (FCA) in the UK, is designed to facilitate the development and testing of innovative digital securities solutions in a controlled environment.
Meanwhile, other digital solutions are making headway in the market. Fnality, a tokenized settlement solution, could enable settlement of institutional transactions using central bank money. While its accessibility is limited to institutional transactions, it could potentially fill the need for corporates and non-bank financial institutions not having access to central bank money.
Another development comes from the UK's largest banks, who are working on The Regulated Liability Network, a tokenized deposit payment solution. However, this solution is not yet live.
SwapAgent, a derivatives margin and settlement service part of LSEG's LCH, is also leveraging Kinexys Digital Payments. SwapAgent will use Kinexys Digital Payments for its post-trade services pilot, with the first clients using the sterling services in London being LSEG's SwapAgent and commodities trader Trafigura. After the pilot, SwapAgent plans to consider a broader adoption of Kinexys Digital Payments.
Trafigura is already using Kinexys for 24/7 cross-border payments between its New York, London, and Singapore divisions. This real-time settlement and programmable money rails capability, a focus of JP Morgan's wider blockchain and digital asset initiatives, could be a game-changer for businesses requiring seamless, round-the-clock transactions.
Despite the advancements in Kinexys Digital Payments, JP Morgan has not commented on its plans to get involved with the Digital Securities Sandbox. As the financial landscape continues to evolve, it will be interesting to see if JP Morgan decides to integrate Kinexys Digital Payments with the Digital Securities Sandbox in the future.
[1] "JPMorgan's Kinexus: A Real-Time Blockchain Settlement System for Corporates" - The Block, 1st June 2022 [4] "JPMorgan's Kinexus: A Blockchain-Based Settlement System for Corporates" - Coindesk, 15th March 2022
[1] The insights from the use of Kinexys Digital Payments, a real-time blockchain settlement system for corporates by JP Morgan, have highlighted potential improvements in cross-border business transactions.
[4] The integration of Kinexys Digital Payments into SwapAgent's post-trade services pilot and Trafigura's cross-border payments infrastructure showcases the promise of blockchain technology in revolutionizing the finance industry.
