JPMorgan to launch instant blockchain FX settlement between Dollar and Euro

JPMorgan Chase & Co will introduce instant foreign exchange (FX) settlement between the US dollar and euro in early 2025, leveraging its newly rebranded blockchain platform Kinexys.

The bank plans to extend the service to include British pound sterling in future phases, marking a significant advancement in digital payment infrastructure.

The announcement comes as the bank rebrands its blockchain unit Onyx to Kinexys, reflecting the platform’s evolution and growing capabilities. Unveiled by Umar Farooq, co-head of J.P. Morgan Payments, at the Singapore Fintech Festival, the rebranding signals the next chapter for the bank’s blockchain business unit, which has already processed over $1.5 trillion in notional value.

The platform handles more than $2 billion in daily transaction volumes and will integrate with J.P. Morgan FX Services to enable near real-time currency conversions and settlement. This enhancement significantly reduces FX settlement risk while accelerating trade settlements through blockchain technology.

“Together with our clients, we aim to move beyond the limitations of legacy technology and realize the promise of a multichain world,” explains Farooq. This vision has already attracted major global players to the platform, including Siemens, Ant International, and BlackRock.

The name Kinexys, derived from ‘kinetic’, meaning ’caused by motion’, reflects the platform’s mission of moving money, assets, and financial information with unprecedented efficiency. The platform has seen remarkable growth, with transaction volumes increasing tenfold year over year, and now serves clients across five continents.

Key developments include:

• Near-instant FX settlement between USD and EUR launching Q1 2025
• Future expansion to include GBP
• 24/7 programmable cross-border transaction capability
• Enhanced intra-group funding without pre-funding requirements
• New proof-of-concept focusing on on-chain privacy and identity

The platform operates continuously, with only a brief three-hour maintenance window on Saturdays (3-6 p.m. EST), providing near-constant availability for global transactions.

“Our goal is to foster a more connected ecosystem to break down disparate systems, enable greater interoperability and reduce the limitations of today’s financial infrastructure,” Farooq emphasizes.

Beyond FX capabilities, Kinexys continues to explore advanced privacy measures through its Digital Assets and Labs Privacy POC, investigating solutions crucial for improving digital asset access and streamlining identity management for tokenized assets at scale.

Kinexys represents a significant advancement in blockchain technology adoption for financial institutions and corporations seeking modern payment solutions. With its proven track record of processing transactions worth $1.5 trillion and ambitious expansion plans, the platform is positioned to accelerate the mainstream adoption of blockchain in financial services.

(Image Credit: JP Morgan Chase & Co)

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