30s Summary

JPMorgan has renamed its blockchain and tokenisation unit, Onyx, as Kinexys and plans to introduce round-the-clock, automated multi-currency settlements from Q1 2025. Kinexys aims to increase interoperability and reduce limitations in the financial infrastructure. JPMorgan’s blockchain business has already facilitated over $1.5 trillion worth of transactions. The forthcoming on-chain foreign exchange capabilities will initially cover USD and euros, with plans to expand to other currencies. The bank aims to speed up the adoption of tokenisation and blockchain technology in mainstream financial services.

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JPMorgan’s Onyx unit, which focuses on blockchain and tokenization, has been renamed Kinexys. There are plans for Kinexys to introduce a feature that would allow for round-the-clock, automated settlements in multiple currencies starting from the first quarter of 2025.

In simpler terms, Kinexys is intended to help break down isolated systems, improve interoperability, and reduce the limitations of today’s financial infrastructure,” as was stated by Umar Farooq, co-head of JP Morgan Payments.

Speaking of tokenization, this refers to the conversion of traditional financial instruments into a digital token; a process which has grown rapidly with increased involvement from big banks. JPMorgan was actually one of the pioneers in this tokenization movement with the establishment of Onyx and JPM Coin, a tech based on blockchain for settlements. The name for JPM Coin has now been switched to Kinexys Digital Payments.

Over $1.5 trillion worth of transactions have already been executed by JPMorgan’s blockchain business since its inception in 2020, amounting to an average processing of more than $2 billion daily. The users of this service are global enterprises like Siemens, BlackRock, and Ant International.

According to the bank, the forthcoming on-chain foreign exchange capabilities synonymous with Kinexys will first roll out for U.S. dollars and euros, and will gradually extend to cover other currencies. This development will usher in an era of automated, near real-time clearing and settlements in various currencies.

In simpler words, with the increasing volume of transactions, booming client adoption, and expanding product range, JPMorgan is looking forward to hastening the adoption of tokenization and blockchain technology into mainstream financial services.