- JPMorgan's rebranded blockchain platform, Kinexys, has established a stronghold by processing more than $1.5 trillion in transactions, an average of $2 billion per day.
- The platform is poised to expand its FX settlement capabilities and continue to serve a diverse range of corporate and institutional clients.
JPMorgan Chase & Co (JPM) has advanced its recently rebranded blockchain platform, Kinexys, by integrating its digital payments and foreign exchange services. This initiative made it possible to carry out on-chain foreign exchange settlements for the first time on this platform. This announcement, made by Umar Farooq, CEO of Kinexys, during the Singapore Fintech Festival, caused a lot of discussion.
Check out JPMorgan’s latest integration
The recent initiative introduces a new structure in which all of JPMorgan's blockchain units related to data, finance and assets will now operate under the Kinexys name. Initially focusing on dollar-euro transactions, Kinexys is positioning itself as a major player in the cross-border digital payments space.
The company plans to expand foreign exchange settlements to other currencies to improve transaction speed and settlement reliability. According to JPMorgan, customers will soon be able to process foreign exchange transactions almost instantly through the bank's global foreign exchange network. This should indeed reduce the traditional risks associated with the settlement of foreign exchange transactions and shorten the time to finalize transactions.
Over the past year, Kinexys has experienced remarkable growth. The platform processing over $1.5 trillion in total trading volume averaged $2 billion per day. “ Soon we will add foreign exchange capabilities to Kinexys Digital Payments, formerly JPM Coin System“, the company said in a press release. Furthermore, the banking giant favored bitcoin amid growing geopolitical tensions, CNF reported.
Beyond foreign exchange operations, Kinexys will remain engaged with a range of corporate and institutional clients. Thus, it will provide solutions for fintechs and financial services. The rebranding of the platform and the expansion of its services reflect the bank's commitment to blockchain-based solutions for global finance.
Furthermore, it is important to note that Kinexys' digital payments system, pegged to the US dollar, reached the milestone of one billion dollars in daily transactions in mid-October. Kinexys also launched a proof of concept (POC) to demonstrate advanced blockchain features, such as on-chain privacy and identity.
This white paper explores “ major themes that will play an important role in our continued evolution“. These include composability and identity verification within blockchain ecosystems. With the use of distributed ledger technology, this POC signals JPMorgan's ambition to build a blockchain-based financial system, which improves data privacy and interoperability.
Other initiatives from the banking giant
Earlier this year, JPMorgan collaborated with Mastercard, Visa and Citigroup in May. This collaboration aimed to test distributed ledger solutions, which led to the creation of the Regulated Settlement Network (RSN). The RSN links commercial bank deposits with central bank reserves and securities, including U.S. Treasuries and investment-grade assets, to facilitate settlements.
Through U.S. dollar trials, the RSN assessed the potential of distributed ledger technology to create a more interconnected financial system. This project therefore received support from the New York Innovation Center of the Federal Reserve Bank of New York.
Additionally, the bank also revealed its position in the recently launched spot Bitcoin ETFs, marking its entry into crypto ETF products. Subsequently, in June, JPMorgan welcomed Fidelity International to its token network, adding another major player to the bank's blockchain initiative.
