Blockchain Turns Cash into Code as Lenders Race to Automate

Real estate lender Trimont has begun using JPMorgan’s blockchain platform, Kinexys Digital Payments, to automate and expedite loan payment processing, marking a significant step toward the adoption of blockchain in commercial real estate finance. Trimont, which manages approximately $730 billion in assets, started utilizing the system in August and plans to expand its use in the coming year. The platform automates the identification, verification, and distribution of loan payments, reducing settlement times from two days to minutes. This change is expected to deliver significant financial benefits by enabling lenders to receive payments up to two days earlier than under traditional systems [1].

The implementation of Kinexys by Trimont highlights a growing interest among financial institutions in leveraging blockchain to improve the speed and efficiency of transactions. JPMorgan’s Kinexys, launched in 2019, already processes around $3 billion in transactions daily, with the ability to support programmable payments since 2023. This allows companies to automate cash movement based on predefined conditions, embedding software into financial transactions to make them more intelligent and responsive. Naveen Mallela, global co-head of Kinexys, emphasized that this shift reflects the evolution of money into a more data-like asset—fast, flexible, and programmable [1].

Beyond Trimont, JPMorgan’s blockchain infrastructure is being adopted by other firms seeking to streamline cross-border and multi-currency transactions. Ant International, a global fintech services provider, recently integrated Kinexys into its blockchain-based treasury management platform, Whale. This collaboration enabled one of the first near-instant USD to EUR cross-border payments in Asia through the network. The integration allows businesses to access liquidity in multiple currencies beyond traditional market hours, improving the efficiency of global transactions. Ant International has worked closely with JPMorgan since 2021 to facilitate real-time multi-currency settlements across key markets in Asia, Europe, and the Middle East [2].

JPMorgan’s expansion of blockchain-based payment solutions is part of a broader shift in the financial industry, where firms are increasingly looking to digital infrastructure to bypass traditional banking limitations. The ability to conduct transactions around the clock and across time zones is particularly valuable in fast-paced commercial and global markets. Terry Harcott, Global Head of FX Services Payments Product at JPMorgan, highlighted the advantages of the system, noting that the network is supported by one of the largest liquidity pools in the market. This positions firms like Ant International for growth by enabling secure, real-time cross-border transactions [2].

As blockchain adoption accelerates, it is reshaping how financial services operate. The move toward programmable payments and real-time settlement is being driven by demand for greater efficiency and transparency in global transactions. Trimont’s initiative signals that commercial real estate finance, like other financial sectors, is beginning to embrace blockchain technology as a core component of its infrastructure. The success of these early adopters may influence the broader market, encouraging more firms to explore similar solutions as the technology matures and regulatory frameworks evolve [1].

Source:

[1] Real Estate Lender Trimont Taps JPMorgan's Blockchain to Automate Loan Payments (https://cryptonews.com/news/real-estate-lender-trimont-taps-jpmorgans-blockchain-to-automate-loan-payments/)

[2] Ant International Completes FX Blockchain Settlement in Asia via JPMorgan's Kinexys (https://www.finextra.com/pressarticle/106882/ant-international-completes-fx-blockchain-settlement-in-asia-via-jpmorgans-kinexys)