Thanks to its private blockchain and its native token, the American bank JP Morgan will soon allow its institutional clients to carry out currency conversions between the euro and the dollar instantly.
A new service to instantly convert dollars into euros (and vice versa)
According to information obtained by our colleagues from Bloombergthe American bank J.P. Morgan will soon offer instant currency conversion between dollars and euros thanks to Kinexysthe new name of its private blockchain which was called Onyx until now.
For JP Morgan's institutional clients, this is a real change since usually, foreign exchange settlement takes 1-2 days depending on the currency pair.
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In order to provide such a service, the banking giant relies on JPM Coin, its token dedicated to institutions and private companies for their cross-border payments. At present, over $2 billion in transactions are managed using the native Kinexys token.
Currently, JPM Coin facilitates dollar and euro payments for its institutional clients through Kinexys. This initiative constitutes the'one of the rare examples of distributed ledgers deployed on a large scale by a large bankeven if it does not manage with this technology only a tiny part of the 10,000 billion dollars daily managed by JP Morgan.
With its new instant conversion service, the financial institution hopes to attract more customers, especially fintech companiesand thus exploit its blockchain to manage more financial flows. This is what Naveen Mallela, co-director of the Kinexys division, explains:
If you look at JPM Coin, we generate revenue from fees, we also generate revenue from liquidity from holding these balances. We now offer a third source of income from exchange spreads.
Once approvals are obtained, the pound sterling will be integrated into the serviceallowing instant conversion with dollars and euros.
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JP Morgan's private blockchain changes name to enter a new era
Along with this announcement, JP Morgan revealed the new name of its blockchain : Kinexys. As the group explains in a press release, this name is a derivative of the word “kinetic”, also meaning “connection” and “link”.
It was chosen because this term would represent “ the way in which we move money, digital assets and financial information worldwide with ease, speed and efficiency “.
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Umar Farooq, Global Co-Head of JP Morgan Payments, explained this name change in more detail, also associated with the new ambitions of the firm :
With our customers, we want to go beyond the limits of traditional technologies and realize the promise of a multi-chain world. Our goal is to foster a more connected ecosystem to eliminate disparate systems, enable greater interoperability and reduce the limitations of current financial infrastructure.
Although it seeks to expand its portfolio of blockchain-based products through Kinexys, JP Morgan continues to study the limits of this technology in order to offer more efficient services in the future.
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Source: Bloomberg, Press release
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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