JPMorgan has rebranded Onyx, one of the world’s first bank-operated blockchains, and plans to improve the platform to drive broader adoption of blockchain technology and tokenization in traditional financial services.
The platform will now be called Kinexys and the company’s payment settlement system, JPM Coin, will be renamed Kinexys Digital Payments. In addition to the rebranding, JPMorgan announced plans to introduce on-chain currency conversions to the platform next year. Initially, the program will facilitate conversions from US dollars to Euros, with plans to add more currencies in the future.
At the Singapore Fintech Festival, Kinexys CEO Umar Farooq said the changes aim to automate real-time multi-currency clearing and settlement.
“It’s huge,” said Joel Hugentobler, a cryptocurrency analyst at Javelin Strategy & Research. “The foreign exchange market is one of the largest and most liquid markets in the world, and 24/7 instant settlement is essential. This will help reduce counterparty risk in multi-bank transactions and should provide greater transparency to the participants involved.
Facilitate the exchange
JPMorgan is one of the largest institutional investors in digital asset technologies, including tokenization, which has become a priority for many of the world’s largest financial institutions because it can significantly facilitate the exchange of assets physical.
Banks’ early adoption of digital assets has paid off. JPMorgan’s blockchain platform has processed more than $1.5 trillion since its launch a few years ago, and the bank estimates that Kinexys now handles around $2 billion per day.
Powerful solutions
Digital asset technologies are among the most powerful emerging payment solutions, and JPMorgan has continued to promote their integration into financial services. The banking giant recently joined efforts to establish a network for multi-asset blockchain transactions. The regulated settlement network would create a framework within which commercial bank funds, central bank funds, and securities such as U.S. Treasuries could be tokenized and settled.
JPMorgan also recently disclosed its significant exposure to Bitcoin ETFs and welcomed fellow crypto player Fidelity International to Kinexys.
“We live in a digital world, but we still operate largely on a financial infrastructure that is at least fifty years old,” Hugentobler said. “This upgrade is essential. What is your bank doing to stay competitive? »
