JPMorgan Adds British Pound to Blockchain Payments Network

JPMorgan has expanded its blockchain-based payments network, Kinexys, to include support for British pound-denominated accounts. This addition comes as the bank seeks to address a gap in the stablecoin market, which has predominantly focused on the U.S. dollar. Launched in 2019 as JPM Coin, Kinexys enables corporate clients to transfer funds between JPMorgan accounts and settle foreign exchange trades at any time of the day.

The inclusion of the British pound follows the service's expansion to handle euro transactions less than a year ago. According to Naveen Mallela, global co-head of the Onyx platform running the network, while 80% of Kinexys volume remains dollar-based, the demand for pound transfers is on the rise. This move is significant as it addresses a longstanding issue in the stablecoin market, where nearly all tokens are tied to the dollar, limiting options for companies needing fast, low-cost payments in other currencies.

Initial participants in the expanded pound service include SwapAgent, a post-trade firm, and Trafigura, one of the world's largest commodities traders. The Kinexys network now processes over $2 billion in daily transactions, although this represents a small fraction of the $10 trillion daily volume JPMorgan handles across its entire payments business.

This strategic move by JPMorgan to integrate the British pound into Kinexys underscores the bank's commitment to leveraging blockchain technology for more seamless and secure financial transactions. By offering support for multiple currencies, JPMorgan aims to cater to a broader range of corporate clients engaged in international trade, providing them with reliable and efficient payment solutions. This development highlights JPMorgan's leadership in blockchain technology and its dedication to innovation in the financial services sector.

The launch of GBP-denominated blockchain deposit accounts on the Kinexys Digital Payments platform in London further solidifies JPMorgan's position as a leader in blockchain technology. These new accounts will enable corporate clients to conduct transactions in British pounds, offering them the flexibility to manage their finances in multiple currencies. This initiative is part of JPMorgan's broader strategy to enhance its digital payment capabilities and provide more robust solutions to its clients.

The addition of the British pound to Kinexys is expected to streamline cross-border payments and foreign exchange services for corporate clients. By utilizing blockchain technology, JPMorgan can offer faster, more secure, and transparent transactions, reducing the complexities and costs associated with traditional payment methods. This development is likely to attract more corporate clients seeking efficient and reliable digital payment solutions, further strengthening JPMorgan's market position in the financial services industry.