Banks in the Middle East and North Africa (MENA) region will transition to JPMorgan’s new blockchain platform — Kinexys. This innovative system will enable eight leading financial institutions to conduct international settlements more efficiently.
This is reported by Finway
To date, the total number of transactions processed by the Kinexys platform exceeds $1.5 trillion. JPMorgan’s blockchain division, formerly known as Onyx, has signed agreements with banks such as Qatar National Bank, Saudi National Bank, First Abu Dhabi Bank, Emirates NBD, Commercial Bank of Dubai, and Bank ABC. This indicates a growing interest in innovative technologies within the financial infrastructure of this region.
Kinexys Capabilities for Financial Institutions
Co-head of Kinexys, Navin Mallela, noted that this collaboration provides an opportunity to “fundamentally change the clearing and settlement mechanism in a multi-currency environment” in the MENA market. He emphasized that financial institutions face significant challenges in interbank and cross-border payments, as well as in ensuring liquidity.
“They need infrastructure that allows for 24/7 settlements in almost real-time,” Mallela stated.
According to JPMorgan, the Kinexys platform is already demonstrating impressive results: the average daily transaction volume exceeds $2 billion, and the annual growth rate of payment volume has increased tenfold. Additionally, Kinexys is integrated with JPMorgan’s currency services, allowing for settlements in US dollars, euros, and British pounds, with potential for expanded functionality.
Key Components of Kinexys
The Kinexys platform consists of four main components:
- the Kinexys Digital Payments blockchain platform for deposits and payments;
- the Kinexys Digital Assets asset tokenization service;
- the Kinexys Liink network for payment information exchange;
- the Kinexys Labs blockchain research division.
It is worth noting that in July 2024, JPMorgan also launched an internal chat-bot, LLM Suite, which serves as an analyst based on artificial intelligence technologies.