JPMorgan to launch instant euro-dollar conversions on its blockchain

Share This Post

JPMorgan has developed instant dollar-euro settlements using its Kinexys blockchain, with the new feature slated to go live in the coming months. 

According to a Bloomberg News report, the bank will leverage its proprietary JPM Coin to facilitate fast, secure transactions for participating institutions. Once regulatory approvals are obtained, JPMorgan plans to add sterling transactions to the platform.

Kinexys processes over $2 billion in transactions daily and currently supports dollar- and euro-denominated payments. Yet, that figure represents a small fraction of JPMorgan’s $10 trillion daily payments volume.

Streamlining exchanges

Naveen Mallela, JPMorgan’s global co-head of Kinexys, said the lender aims to leverage blockchain technology to reduce operation costs and bolster liquidity for its clients in the traditional banking industry, where dollar-euro exchanges usually take up to two days to settle.

Mallela added:

“If you look at JPM Coin, we generate revenues from fees, we also generate revenue from liquidity from holding those balances. We’re coming up with a third revenue stream from FX spreads.”

As Kinexys grows, the platform’s transaction volume has increased tenfold over the past year, with executives anticipating further scaling. 

Seeking profitability

However, as JPMorgan expands functionality and customer reach, its blockchain operation is not profitable. Umar Farooq, global co-head of JPMorgan Payments, noted that balancing costs with revenue may take three to five years. 

The bank’s proprietary blockchain division, Onyx, offers four major products, from blockchain-based clearing services to a tokenization platform. 

In November 2022, the lender executed its first foreign currency trade on a public blockchain a forked version of the leading money market, Aave, to issue and swap 100,000 Singaporean dollars for Japan’s yen with SBI Digital Asset Holdings.

The transaction was conducted on the Polygon blockchain, a public network, as a part of the Monetary Authority of Singapore’s Project Guardian.

The post JPMorgan to launch instant euro-dollar conversions on its blockchain appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Crypto Liquidations Top $494M as Altcoins Gain Bullish Momentum

The post Crypto Liquidations Top $494M as Altcoins Gain Bullish Momentum appeared first on Coinpedia Fintech News As Bitcoin (BTC) closed the third consecutive week in the price discovery phase, the

Crypto Whale Shifts Focus From $MOODENG to $WOJAK

The post Crypto Whale Shifts Focus From $MOODENG to $WOJAK appeared first on Coinpedia Fintech News The legendary trader Dimethyltryptamineeth, famous for turning $45,000 into $469M with $PEPE, has

Whales Accumulate Bitcoin Amid Price Drops; Spot ETF Inflows Surge

The post Whales Accumulate Bitcoin Amid Price Drops; Spot ETF Inflows Surge appeared first on Coinpedia Fintech News Whales remain undeterred by recent Bitcoin price fluctuations, continuing to

Long-Term Bitcoin Holders Signal Growing Greed: Peak Incoming?

The post Long-Term Bitcoin Holders Signal Growing Greed: Peak Incoming appeared first on Coinpedia Fintech News Based on the latest data from the on-chain indicator NUPL (Net Unrealized Profit/Loss),

Latam Insights Encore: El Salvador Is Uniquely Positioned to Become the Microstrategy of Nation States

Welcome to Latam Insights Encore, a deep dive into Latin America’s most relevant economic and cryptocurrency news from last week In this edition, we explore a proposal by Max Keiser that would

SEC Settlement with Ripple: Could This Spark a $10 Rally for XRP?

The post SEC Settlement with Ripple: Could This Spark a $10 Rally for XRP appeared first on Coinpedia Fintech News The Ripple vs SEC case is getting more interesting, especially with the recent