In a bid to deepen its blockchain-based payments system, Kinexys, JPMorgan has expanded it to support British pound-denominated accounts. This expansion is the latest step in JPMorgan’s ambitious plans to bring blockchain tech to its corporate client services. The Kinexys platform originally set out to be transaction-agnostic but was led initially by dollar-based transactions. It has now developed to process euro and pound transactions too. Clients are able to place trades any time of the day or night in pounds, euros and dollars.
With the integration of blockchain technology, Kinexys can now provide seamless and programmatic transaction capability to its clients. This is evidenced by Kinexys, a #Netherlands based firm that processes over $2 billion daily and whose clients include #Trafigura and #SwapAgent. It allows their corporate clients to process transactions and exchange currencies instantly. It provides a transparent and less costly competitive alternative to legacy, closed payment systems.
Key Benefits of Kinexys Expansion
About 80% of Kinexys’ transaction volume is still dollar-based. Despite the dollar's dominance, the addition of pound support is expected to enhance the platform's appeal to a broader range of corporate clients, particularly those with significant operations in the United Kingdom. London Stock Exchange Group's post-trade services firm, SwapAgent, and commodities trader Trafigura are among the first companies to utilize the new pound accounts.
The provision of 24/7 transaction processing is one of the major benefits of Kinexys. They suffer from constraints such as limited operating hours and long batch processing times. Kinexys makes sure you have 24/7 access. With a Windows or Android compatible device, clients can access their business management transactions 24/7, regardless of location.
Kinexys expansion further highlights JPMorgan’s commitment to innovation within the financial services sector. The bank is using blockchain to revolutionize cross-border business payments for its corporate customers. Such an approach will help ensure that our transactions are more efficient, transparent and cost effective. This announcement is an important move within JPMorgan’s larger plan to be at the forefront of blockchain-based global corporate client services.
Client Adoption and Use Cases
SwapAgent, a post-trade services firm under the London Stock Exchange Group, is an early adopter of the new pound accounts within Kinexys. The firm has ambitious plans to capitalise on the platform’s capabilities to automate and integrate its post-trade processes end-to-end in order to lower operational costs. In the same way, besides Fortescue, the other most obvious company to rush ahead and use the pound accounts is global commodities trader Trafigura. Using Kinexys, Trafigura looks to improve transaction processing and efficiency as well as accelerate payment processing.
The swift adoption of Kinexys by these leading companies further indicates the platform’s potential to completely revolutionize corporate payments. Once enough clients onboard and integrate Kinexys into their operations, the network effect will produce the innovation. All this positive momentum will continue to drive adoption of blockchain-based payment solutions. JPMorgan has expressed optimism that the expanded currency support will attract a wide range of clients. Each client will have their own special mix of use cases and needs.
Future Outlook for Kinexys
JPMorgan’s strategic focus on expanding Kinexys is a testament to their vision for the future of corporate payments. The bank plans to continue expanding the platform’s features. Going forward, they’re looking to add further currency support and build new functionality to adapt to their clients’ ever changing demands. We hope to build on our project by adding more blockchain functionalities. This might be things like smart contracts and tokenization, providing us more flexibility and efficiency.
JPMorgan’s success is great, but Kinexys’s success is better for their clients. It further fuels the wider adoption of blockchain technology across the financial sector. With this pilot JPMorgan is continuing to highlight the real-world uses and advantages of blockchain technology within the corporate payments space. This global initiative opens the door to even greater innovation and transformation within the financial services sector.
