JP Morgan’s blockchain business unit Kinexys has launched GBP-denominated blockchain deposit accounts in the UK.
The new accounts, launched on Kinexys Digital Payments (KDP) at the firm’s London branch, are one of the first blockchain products of this kind in the UK.
The bank said that the move marks the first time UK-based companies will actively be using blockchain accounts for 24/7 real-time payments and cross-border transactions, with users able to conduct foreign exchange (FX) between GBP, EUR, and USD.
It follows the introduction of EUR-denominated blockchain accounts in Frankfurt.
KDP, which first launched blockchain deposit accounts in 2019, is now being used by a growing number of corporate and financial institution customers around the world.
Last month, Axis Bank, one of India’s largest private banks, launched near real-time, 24/7 programmable US Dollar (USD) clearing capabilities for its business customers in India through a partnership with JP Morgan’s Kinexys Digital Payments.
By partnering with Kinexys Digital Payments (KDP), JP Morgan’s global provider of blockchain-based financial infrastructure, the bank’s customers can now access 24/7 cross-border payments.
SwapAgent, a London Stock Exchange Group (LSEG) Post Trade Solutions business, and Trafigura will be the first companies to open London accounts on the platform.
They will be able to access funds on demand with weekend processing and extended same-day FX settlements.
SwapAgent will be opening KDP’s London blockchain accounts for its digital post trade services pilot project, and is considering opening additional blockchain accounts for its broader native offerings, allowing it to operate beyond traditional branch cut-off times and manage liquidity 24/7 in a “programmable manner.”
“Integrating the innovative KDP blockchain deposit accounts into our SwapAgent offerings could allow us to operate beyond traditional branch cut-off times and manage settlements in a programmable manner in the future,” said Nathan Ondyak, chief executive at SwapAgent.
Trafigura, one of the world’s largest suppliers of commodities, will also be using the accounts to provide 24/7 real-time payments across their global financial centres, including New York, London and Singapore.
The firm will also roll out programmable payments to automatically move funds and adopt blockchain deposit accounts for real-time cross-border transactions.
Chris McLaughlin, global head of group treasury, Trafigura, said: “By implementing programmable payments and adopting Blockchain Deposit Accounts for real-time cross-border transfers, we believe we are poised to benefit from a transformative financial solution that will streamline our operations and enhance our competitive edge in the global commodities trading landscape.”
Since its launch, over $1.5 trillion in transaction volume has been processed on the Kinexys platform, with the average daily transaction volume reaching more than $2 billion.
