JP Morgan introduces blockchain-driven Kinexys Digital Payments in pound sterling for the UK market
In a significant move, Kinexys Digital Payments, a core cross-border payment platform, has expanded its services to support transactions in British Pounds (GBP) within the UK's Digital Securities Sandbox (DSS). This development marks a step forward in streamlining digital payments and foreign exchange for corporates and financial institutions.
The DSS, a joint initiative from the Bank of England and the Financial Conduct Authority (FCA), is currently in its early stages. Kinexys Digital Payments utilizes a permissioned blockchain that supports multiple currencies, including the British pound, to facilitate 24/7 support for corporate payments and foreign exchange.
Kinexys Digital Payments, which is already being used by Trafigura for cross-border payments between its New York, London, and Singapore divisions, has processed over $1.5 trillion in cumulative transactions across all its services. The platform's integration with JPM Coin is designed to enhance its payment capabilities, aiming to reduce transfer and exchange costs in cross-border transactions.
Some of the UK's largest banks are working on the Regulated Liability Network, a tokenized deposit payment solution, but it is not yet live. Fnality, a separate tokenized settlement solution that uses central bank money, could enable settlement of institutional transactions.
The first clients to use the sterling services in London are LSEG's SwapAgent and commodities trader Trafigura. Nathan Ondyak, CEO at SwapAgent, stated that integrating Kinexys Digital Payments could allow for operations beyond traditional branch cut-off times and managing settlements in a programmable manner in the future.
While Kinexys Digital Payments serves as a core infrastructure element within the UK's Digital Securities Sandbox, specific details on its sandbox participation context are not explicitly detailed in the available information. However, the integration with JPM Coin suggests a link to major financial institutions and advanced blockchain-enabled payment systems.
SwapAgent, a derivatives margin and settlement service under LSEG's LCH, is using Kinexys Digital Payments for its post-trade services pilot. There is no information about the cumulative transactions or daily transactions volume of Kinexys Digital Payments in relation to the Digital Securities Sandbox. Additionally, JP Morgan did not comment on its plans to get involved with the Digital Securities Sandbox.
Looking ahead, SwapAgent is considering a broader adoption of Kinexys Digital Payments after the pilot. Kinexys Digital Payments could potentially be one of the digital solutions used in the UK, filling a gap for corporates and non-bank financial institutions that may not have access to central bank money. The platform now averages around $2 billion in transactions daily.
[1] Source: Reuters, Coindesk, Finextra, and Business Insider articles on Kinexys Digital Payments expansion and its integration with JPM Coin.
- Kinexys Digital Payments, with its integration with JPM Coin, aims to leverage blockchain technology to enhance financial operations, particularly within business and corporate sectors, by providing 24/7 support for corporate payments and foreign exchange.
- The use of Kinexys Digital Payments by SwapAgent and commodities trader Trafigura not only showcases the platform's capability in streamlining digital payments but also indicates its potential to fill gaps in financial services for corporates and non-bank financial institutions, thereby offering novel insights in the realm of finance and technology.
