JPMorgan has rebranded Onyx, one of the world’s first bank-operated blockchains, and plans to enhance the platform to drive broader adoption of blockchain technology and tokenization across mainstream financial services.
The platform will now be called Kinexys, and the company’s payment settlement system, JPM Coin, will be rebranded as Kinexys Digital Payments. In addition to the rebrand, JPMorgan announced plans to introduce on-chain foreign exchange conversions to the platform next year. Initially, the program will facilitate U.S. dollar to euro conversions, with plans to add more currencies in the future.
At the Singapore Fintech Festival, Kinexys CEO Umar Farooq stated that these changes are intended to automate real-time, multicurrency clearing and settlement.
“This is big,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “The forex market is one of the largest and most liquid markets in the world, and 24/7 instant settlement has been much needed. This will help reduce counterparty risk in multi-bank transactions and should provide greater transparency to the participants involved.”
Facilitating the Exchange
JPMorgan has been one of the most significant institutional investors in digital assets technologies, including tokenization, which has become a central focus for many of the world’s largest financial institutions because it can substantially facilitate the exchange of physical assets.
The banks’ early adoption of digital assets has paid off. JPMorgan’s blockchain platform has processed over $1.5 trillion since its launch a few years ago, and the bank estimates that Kinexys now handles roughly $2 billion per day.
Potent Solutions
Digital assets technologies are among the most potent emerging payment solutions, and JPMorgan has continued to push for 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 in which commercial bank funds, central bank funds, and securities like U.S. Treasuries could be tokenized and settled.
JPMorgan has 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 largely operate on a financial infrastructure that is at least five decades old,” Hugentobler said. “This upgrade is much needed. What is your bank doing to stay competitive?”
