JP Morgan Chase has revealed plans to offer instant settlement for foreign exchange conversions between the dollar and the euro.
Using its JPM Coin tokenised deposit native to the Kinexys platform, the bank will allow customers to convert between the dollar and the euro with instant settlement.
According to JP Morgan, traditional foreign exchange settlement ranges from the same day to as many as two days depending on the currency pair.
Furthermore, the bank announced that sterling is to be added once approvals are in place.
In an interview with Bloomberg, Naveen Mallela, Global Co-Head of the bank’s Kinexys digital ledger, said: “If you look at JPM Coin, we generate revenues from fees, we also generate revenue from liquidity from holding those balances. We’re coming up with a third revenue stream from FX spreads.”
This new offering comes amid a rebranding of the aforementioned Kinexys, formerly known as Onyx.
In an announcement of the rebrand, the bank emphasised the need to keep up the momentum it has created. Since its inception, the platform has exceeded $1.5trn in notional value, processing an average of more than $2bn daily in transaction volume.
Additionally, JP Morgan noted that payments transactions have grown by 10x year-over-year, stating that it has executed some of the largest repo transactions on any blockchain globally.
Umar Farooq, Co-Head of JP Morgan Payments, commented: “Together with our clients, we aim to move beyond the limitations of legacy technology and realise the promise of a multichain world. 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.”
In addition to expanding its product offering, the US bank will explore privacy, identity and composability in blockchain ecosystems and publish a whitepaper to demonstrate a new POC.
Farooq added: “We’ve built our business on a history of innovation, and like the industries we serve, we are always evolving. We are excited for this new chapter and are looking forward to continuously shaping the future of financial services together with our clients.”
Last year, Middle Eastern Bank ABC became the first financial institution in the region to offer cross-border payments with JP Morgan’s Coin Systems.
